You can not invest in securities everything that you have
First, create a financial safety cushion – set aside 3-6 salaries on deposit in the bank. And only then proceed to stock trading. Invest an amount, the loss of which you are ready to accept.
Don’t Act at Random – Get Trained
If you decide to trade on the stock exchange yourself, be sure to undergo training. Most brokers run courses for novice investors. In trading programs, there is often a demo mode: you can try your hand at it without the risk of losing money.
Don’t give in to emotions
Acting impulsively, you can make many mistakes. A novice investor should not react sharply to the slightest price movement on the stock exchange. But it is necessary to act decisively if the price changes significantly.
Set a limit on the losses that you are willing to incur: for example, if assets have fallen in price by 20%, you need to sell and, as they say on the stock exchange, fix losses. The desire to wait – suddenly the price will bounce – will be great, but you do not need to succumb to it. Otherwise, you can lose even more.
Don’t put all your eggs in one basket
It is better to buy securities of companies from different industries in order to diversify risks. For example, if you invest in securities of only oil companies, the risks of losses will be very high. Since, say, when oil prices fall, the shares of all companies in the oil and gas sector usually become cheaper. If you buy securities of companies in various sectors of the economy, say, the chemical industry, engineering, telecommunications, this will help you reduce the risk of losing your invested money.
Do not believe the promises to earn 500% per day
Only scammers can guarantee anything in the stock market. A responsible intermediary should warn you about the risks. The situation on the stock exchange is volatile, and only you are responsible for the decisions made.