A good stockbroker or financial planner knows that everyone has a risk tolerance that should be acknowledged. They should also help you in finding what your level of tolerance for risk is. Your investments should be able to meet and not exceed your tolerance with the help of your financial planner or broker. To find your tolerance, you need to determine how much money you are willing to invest and what your financial goals are.

If you feel that your retirement is fast approaching and you don't have much, you need to have a high risk tolerance. You need to be able to make some risky investment and be aggressive in your investing to reach your financial goal. A low risk tolerance may be more appropriate for those who are in their early twenties and wants to begin investing for their retirement. They can take it slow and watch as their investment grow as time goes by.

Finding your tolerance to risk has no bearing on what you feel about taking risk and your financial goals, there is more in finding your tolerance in investing. If you invested in a stock and monitored its movement daily, one day you saw it drop a little and then the next day the same thing happens. Would you sell that stock or would you watch as it drops and see what happens. Those who have low risk tolerance would surely sell while investors with high risk tolerance would rather see what happens. This has nothing to do with your financial goals but how you feel about your invested money.

You should find a good financial planner or stockbroker to help you discover what your level of tolerance to risk is. You should be comfortable with the risk and create your investment plan accordingly. Your risk tolerance will be based on your financial goals and the amount of risk you can take with regards to losing money.