Diversifying your portfolio with stocks is an excellent way to achieve this. If you invest in a variety of companies, you may be able to save money, keep it safe from inflation and taxes, and earn more money. There are several risks to investing in the stock market. When investing, your risk tolerance and the risk/return relationship are important considerations. Stock market volatility is the main downside. On average, the stock market falls 10% from its peak every 11 months, 20% every four years, and 30% or more every 10 years. Investing in stocks is not suitable for everyone. Most individuals favour investing in equities due to their upside potential over the risks associated with it. As a result, investing in equities is still a smart idea even when the stock market is at its peak. Studies show that an investor's time in the market is more important than his or her timing. Stock investments may be expensive to wait for the right time since a substantial share of profits is realized within a few days. After significant dips, such as dips of more than 10%, stocks, on the other hand, tend to recover quickly. An investor with a longer trading history is less likely to lose money. Timing the market is just as important as investing in the right stocks.