The stock market has been acting up lately, with fears about what the Federal Reserve and other central banks will do rippling throughout the global financial markets. Yet, as painful as losses can be, they can be a good guide to show you what your true risk tolerance is.

In the following video, Fool contributor Dan Caplinger looks at how wild moves in stock markets expose the true risk involved in investing in stocks. For those who learn that they're not comfortable with stock volatility, Dan has some guidance on strategies to consider, with a particular emphasis on avoiding ill-advised money moves that often work, but aren't appropriate in the current market environment.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.