# Risk Tolerance

*Saving & Investing — Finicade finance glossary*

How much ups-and-downs you can stomach — financially and emotionally — before you'd panic-sell. It should drive your asset mix: the right portfolio is one you can actually hold through a bad year.

**Related terms:** [Asset Allocation](https://finicade.com/glossary/asset-allocation), [Volatility](https://finicade.com/glossary/volatility), [Diversification](https://finicade.com/glossary/diversification)

Source: https://finicade.com/glossary/risk-tolerance