All assets have a trading range, even a house goes up and down in value within a trading range. If a stock market can rise 30% in a year, then it can equally fall 30% in a year. Can you afford to lose 30%? The video explains how we calculate risk of loss and the need to explore the volatility of different investment fund categories so that you can work whether your exposure to growth or loss is outside your 'comfort zone' i.e. your own tolerance to investment loss volatility.