Taking risks does increase the possibility that you will lose money but that shouldn't deter you. Of course, there is a difference between taking a calculated risk and gambling recklessly. You can be both smart and reckless at once, which means that your odds of success are higher than if you were only one or the other.
This is why people gamble in casinos. They know they're not going to win big by playing slots, so instead, they try their luck at roulette or craps. The house edge on those games isn't high enough for gamblers to make a killing from them, but the odds are in their favor. Roulette has a 5.26% house edge compared to the 6.25% odds of winning you get with blackjack, making it an attractive option. On the other hand, while the house edge on craps isn't as low as it is on slots, the payout percentage is much higher (98.41%) compared to the 91.76% you get with slots, which makes it a more enticing choice when it comes to gambling.
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The key to successful risk-taking is being aware of what you're doing and how much money it's costing you. Don't try to outsmart the market; instead, learn everything you can about investing so that you can make informed decisions. If you don't have time for long research sessions, sign up for an online broker so you can do some of the legwork yourself. Then take advantage of free educational resources like videos, books, and articles to make sure you stay up to date on the latest developments. As for managing your investments, keep in mind that you can always withdraw your money if things aren't working out. Just make sure you do it before you've lost too much capital.
You should also diversify your investments, and hang onto them for the long haul. This will give your portfolio a long time to grow without you having to worry about short-term results. Over time, small increase in return will compound.
A balanced portfolio of stocks and bonds would be ideal, but that's hard for most people to manage. If you can't afford professional advice or if you don't want someone else controlling your money, then keep it simple. Buy some index funds (which track an entire market) and hold on to them for as long as possible.
If you're young, you have plenty of time to learn how to invest and build wealth. Start now by opening a Roth IRA at Vanguard.
Even if the stock market crashes while you are investing in it, remember: It always comes back. If you start saving early enough, you'll have decades to watch your investments grow.