How to Start Investing in 2021:  A Complete Guide

Whether you want to invest in stocks, ETFs, mutual funds, or real estate, it’s best to start with the basics and the foundational investing principles.

1. Diversification Matters

Key Principles of Investing

In investing, consider buying a diverse mix of stocks across different sectors to help shield you from concentration risk and to spread the risk of losing your money.

2. You Can’t Time the Market

Key Principles of Investing

If you’re already invested, don’t let market volatility control your emotions and seduce you into panic selling. Day trading may sound like a sexy thing to do, but when 95% of all traders fail to generate positive returns, it’s really not so hot.

3. Stay Invested Over the Long-Term

Key Principles of Investing

As opposed to timing the market, time in the market over the long term is what matters. That means buying then holding as the market goes through its cycles.

4. Know Your Risk Tolerance

Key Principles of Investing

Risk tolerance essentially means how much risk you’re comfortable taking or flipped the other way, how much investment loss you are willing to stomach.

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