Risk is unavoidable so as an investor, he must have a ready combatant to all the types of risks that may come his way like fire, earthquake, storm, flood, and prices of everything that are skyrocketing. He may also carry some degrees of risks on stocks, bonds, mutual funds, and exchange-traded funds and these can lose their entire value if market conditions turn sour. Life as an investor might be up and down. He relies only on the actual prices and if the next day, prices go up, he could not gain.