How risk ready are you?

Economic perspective - it depends on how much your expected returns are. It's a trade-off, the higher the risk, the higher the returns. You can also look at it as how much you are willing to lose... or how much you can afford to lose. Investment terms, it's the probability you may lose all your money in the investment knowing that the higher the probability also means the higher the returns if the investment does not go bust. :-) Strange but you are right to say that it is a difficult question to answer. How are we going to know how much we are willing to lose until it has already happened??? But I suppose the rationale way is to forecast. How to increase risk level? In what terms? If you are talking abt investment, buy riskier assets. What are riskier assets? Assets that give you very high return but the company is very highly leveraged or very unstable or may go bust anytime.