What risk means in practice
Investments can fall in value as well as rise. You may get back less than you put in. Risk is not only “the chance of loss” — it also includes holding cash that fails to keep up with inflation over long periods.
Match risk to time horizon
Money needed soon usually belongs in accessible cash. Money you can leave for many years may tolerate market ups and downs if you stay diversified and avoid panic selling.
Read more on [diversification](/guides/investing/diversification-basics) and keep emergency savings separate from long-term investments.