Is Investing in Stock Market Highly Risky?

Is it true that investing in stock market is highly risky? The answer is 'Yes' if you don't know what you are doing. The answer is 'No' if you know what you are doing. The risk is very much depends on your level of financial competence and thorough understanding in stock market activity. Likewise, if you have never gone for any driving lessons and have no idea how to read the road signs and don't know what is safe driving, then there is a high chance that could get yourself in accident. On the other hand, if you know how to read road signs and practice safe driving safely, then driving is a low risk activitiy for you.

Therefore, investing is like driving. If you have no idea how to read buying/selling signal, have no clue as to where and how to read financial reports that will impact the stock markets, have very little financial and accounting knowledge to value the worth of the company's shares that you are buying and need to depend a lot on blind luck, then your hard earned money will most likely get burned. To me, these people are not investor but gamblers.

In fact, high risk not necessary leads to high return. High risk can lead to low return or lose too. If you know what you are doing in stock market or with high financial intelligent, you can achieve extremely high return with very low risk!