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How To Recognize And Avoid Risky Investments
By Steven Boaze

The patterns of any particular investment will detail the relative risks and rewards undertaken with each investment. Risks can be defined as "the chance or possibility of injury, damage or loss." Risk focuses on the future and our ability to forecast that future. In turn, the ability to predict the future is largely dependent on what you've learned from the past. The best you can do is to study the record and draw on experience - your own and that of others.

On the surface, the relationship between risk and return seems straight forward. In general, you will find that risk and return move in the same direction. In other words, if you accept a higher risk, it is possible to achiev...
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