Investing always carries some level of risk. Common risks include market fluctuations, economic downturns, and company-specific issues. To manage these risks, it's crucial to understand your personal risk tolerance and to diversify your investments.
Risk tolerance describes how much risk you're comfortable with. Depending on your personal circumstances, you may be more comfortable with lower-risk or higher-risk investments.
Diversifying your investments means that you invest in more than one company. This spreads the risks of investing across all the companies you invest in, rather than just one or a few.