Any type of investing is somewhat of a gamble. Unless you are doing strict savings in a savings account (secured with insurance by the federal government up to $100,000 per individual for each institution), or you are buying secured savings bonds that you hold to full maturity, you are not guaranteed that your original principal (the amount of money you originally invested) is going to be protected.
That said, those types of investments usually produce a much lower return than do investments such as those you do in the stock market. Yes, of course, your principal is still somewhat at risk, and you can lose money. However, the key to making money with riskier investments such as the stock market is to diversify your investments. That way, you are almost certain to have some investments that will do well when others are not doing as well. In addition, you should also expect to diversify your portfolio among different types of investments. For example, your investment portfolio should generally be a mix of different kinds of investments, such as stocks, bonds, and short-term assets like CDs or money market funds.
If your employer offers a 401(k) and you take advantage of it, then […]

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