Trading involves several risks that you should be aware of. Market risk is a key factor, as the value of your investments can fluctuate due to changes in market conditions or economic events. Liquidity risk can also pose challenges, especially if you need to buy or sell assets quickly. Using borrowed money to trade, known as leverage risk, can amplify both profits and losses. Additionally, interest rate changes, credit risks, currency fluctuations, and regulatory shifts can all impact your investments. Emotional risk is another concern, as stress and hasty decisions can lead to mistakes. Understanding these risks is essential for making informed trading decisions and managing your investments wisely.