Any competent financial advisor or stock broker is aware of this and ought to try to ascertain your level of risk tolerance. After that, they ought to collaborate with you to choose investments that do not go beyond your level of risk tolerance. A person's risk tolerance is determined by a number of factors. You must first ascertain your financial objectives and the amount of money you have available for investment. You must have a high risk tolerance, for example, if you have no money saved for retirement in ten years and you intend to do so. This is because you will need to engage in some aggressive and hazardous investing to achieve your financial objective. Conversely, you will have a low risk tolerance if you are in your early twenties and wish to begin investing for your retirement. You can afford to see your money gradually increase in value. Naturally, you should understand that your feelings around risk are not influenced by whether you have a high or low risk tolerance. Once more, a lot goes into figuring out your tolerance. What would you do, for example, if you were an investor in the stock market and you tracked the movement of that stock every day and noticed that it was marginally declining? Would you let your money ride or would you sell out?
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