Should you be scared of the stock market?
It's true that you can lose a lot of money on the stock market - especially if there's a stock market crash. But there are two things you can do to reduce the risk.
Firstly, you can diversify investments. If you buy a range of shares, and buy them in different countries around the world, you'll reduce the risk somewhat.
Secondly, you can invest for the long-term. Yes, stock market crashes happen, but if you stay calm and stay invested, share prices eventually recover and you can usually still make a profit. Granted, there are no guarantees when it comes to the stock market, but if you stay invested for at least ten years, there's a very good chance that you'll do fine.
Take a look at this video and you can see James Bateman, manager of several investment funds at Fidelity, explain more about how to reduce the risk of stock market investment.
We also look at how much money you might make from the stock market if you start investing for the long-term now. The whole process is simpler than you might think!
More about investing:
Why you should invest in shares
Six great reasons to choose an index tracker
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