Risk Ratings

Risk will always influence your investing decisions 📊

This is because you should always understand your comfort with losing and gaining money 🤔

Risk is related to volatility, or how drastically the price of a stock changes over time! 📊

Stocks are usually compared to the SPY (the top 500 US companies) since it’s the benchmark for the entire stock market 😮

Low risk stocks = price changes less than the S&P 500 🧐

High risk stocks = price changes way more than the S&P 500 🤯

The riskier a stock gets, the greater potential profits AND losses 👀

The same is true vice versa 🔄

Lower risk stocks might be more stable, but may have less profit opportunities 🤔

Risk and stability can be affected by a company’s ability to profit, industry, and management 🏢

Risk is also influenced by market conditions and economic events 📊

You can find risk ratings right below the stock’s price graph! 🔍

Risk is on a low to high scale and each stock will have a marker for where it lands! 📍

As an investor, it's important to use your risk tolerance and a stock’s risk level to invest to a safe comfort level 🚀