There are several schools of thought regarding investment strategies. Some experts advise investors to jump in and expect high risks. They maintain the roller coaster will wax and wane with a positive effect over the long haul. Others recommend a cautious approach until investors are confident enough to develop their own strategy. Still other investors and brokers favor a middle ground of some high risks and some low yield but safer investments. The truth is there are no wrong or right ways to approach the issue of risk taking. It is your money, so accommodate comfort levels when investing. Do not be pushed into investing more money than planned. Formulate a budget prior to investing and stick with it to prevent high losses.
If a sector or industry is nerve wracking, invest a bit more cautiously. There are investments to be found in every industry that will carry lower risks than the most popular stocks. In oil and energy, for example, investing in companies that do not actually own a commodity will reduce risk and still have the potential to result in high gains. Companies that supply materials for oil rigging and pipelines will still make a profit whenever a new project begins, or a current one expands. Storage facilities for oil provide another example. Those companies are paid consistently, regardless of the price per barrel for the commodity. Whether the pricing rises or falls, that oil still has to be stored until it can be delivered. People can still invest in oil and energy while remaining within their individual comfort levels. Investors interested in this industry can find more info online.
In contrast, if investors are confident in another industry they will probably feel more comfortable with stocks that carry higher risks. Technology, for example, is constantly changing, improving, and evolving. Finding a startup company with a new product, idea, or service to develop may lead to a major investment early. Investors may be motivated to invest big because they think the company will make a breakthrough in the industry. Learn as much as possible, monitor the markets, and make investment decisions that accommodate personal comfort levels to avoid excessive worry and stress.