conversation: User (mynextstep): "Losing money makes me nervous in general. Should I base my risk tolerance on the scenario that stocks could lose 50% of their value. Therefore to make myself feel better I should invest 65% in bonds, 35% stocks? or perhaps even more in bonds? How do I even come up with a proper allocation?"
  Self: "Base your risk tolerance on this: adjust your allocation to the point where you can sleep well at night, and don't feel like you need to read the financial news every day - or even once a week."
  