Whatever investing strategy you follow, there are always going to be trade-offs between risk and reward. Investing in younger companies, for example, can be a gamble since they lack long track records and often aren't profitable. On the other hand, buying shares early in a company's lifecycle can offer the highest potential for gains if the business succeeds.

Of course, each stock and each company is different, and some come with higher risks -- and higher possible upsides. Lemonade (NYSE: LMND) and Upstart (NASDAQ: UPST) offer huge potential for growth, but both seem quite risky as investments right now.

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Source Fool.com