Risk
Risk
Risk sets out, plainly, the ways people lose money in the stock market: crashes that take years to recover from, single companies that go to zero, concentration in an employer's stock, scams dressed up as opportunities, and our own habits of buying high and selling low. History is the best teacher here, so the section walks through the major crashes with real numbers. Understanding the risks won't remove them, but it is the difference between taking a risk and not knowing you took one.
Start here
Stock Market Risks Explained Honestly
The real risks of owning stocks: market falls, single-stock and concentration risk, inflation, sequence of returns, liquidity, and currency risk for Canadians holding US shares.
Read this first →More in Risk
Stock Market Crashes in History: 1929, 1987, 2000, 2008, and 2020
The five crashes every investor should know: how far the market fell, how long recovery took, what caused each one, and what changed afterwards.
Read the explainer →Common Stock Market Scams and How to Spot Them
How pump and dumps, social-media stock tips, fake advisers, Ponzi schemes, and impersonation scams work, with the warning signs SEC and CSA regulators flag.
Read the explainer →Investor Behaviour Mistakes: What the Research Actually Shows
Loss aversion, the disposition effect, overtrading, recency bias, and chasing performance, with the peer-reviewed evidence and an honest look at the 'behaviour gap' numbers.
Read the explainer →What Happened With GameStop in January 2021?
The GameStop short squeeze explained: the run-up, short interest above 100%, why Robinhood restricted buying, clearinghouse margin calls, and what the SEC staff report found.
Read the explainer →