From my point of view…

One way to put your investment risk in perspective is to look at the risk pyramid, a graphic way of comparing investments. With high-, moderate-, and low-risk categories, the pyramid helps you to see which investments are more or less risky than others. Near the peak are the most risky investments, while at the base are the most reliable returns.

If an investment you’re considering is located near the middle of the pyramid—but you think you can handle more risk—you might select an investment closer to the peak. If you feel that you can’t afford any large losses right now, you might choose an investment closer to the base. When you visualize how likely it is that you’ll receive a particular return, you can see which selection is the best choice to move you toward your goal.