Here's what's more typical: an investor thinks he knows his risk tolerance, and then has his investments cut in half during a 2008/2009-type stock market correction. Then and only then, he realizes that his risk tolerance was way, way lower than he thought it was. This is a classic setup for an overconfident investor who gets blasted out of stocks at market bottoms.
I don't care who you are: your risk tolerance is lower than you think it is. The time to realize this, however, is before a market correction.
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