From Property Talk Community Wiki
Risk Tolerance
An investors choice of strategy is directly related to their level of risk tolerance. Some investors are prepared to take bigger (or perhaps perceived as bigger) risks in return for a bigger potential reward. However other investors will only follow strategies they are comfortable with or perceive have less risk.
There is no right or wrong answer, and investors should seek to understand their risk tolerance to then identify strategies that fit with that level of risk tolerance.
Risk tolerance can also be changed with information. Many risks are perceived as such because the investor has a lack of knowledge or information in a particular area. By seeking out additional information perceived risks may be overcome.
Ways to seek additional information include:
