1. Think, Don't Feel 🧠
Letting emotions like fear and greed drive your investment decisions can lead to buying or selling at the worst times. Keep your cool and stick to your plan with clear goals and risk limits. This will help you ride out the market’s ups and downs smoothly.
2. Spread It Out 🗂
Don’t put all your money in one place. Spread it out across different sectors, asset types, and regions. A well-balanced portfolio acts as a buffer against market volatility and protect you in the long run.
3. Stay the Course ⚓️
Chasing on the latest hot stock or market trend can backfire when the hype dies down. Instead, stick to a long-term strategy based on solid fundamentals and ignore the herd.
4. Mind the Fees 💸
Don’t let fees eat into your returns. Pay attention to transaction costs, management fees, and other expenses. Keeping these costs low will help you get more out of your investments.
5. Forget Timing 🕚
Trying to predict market movements or “time” the market is almost impossible, even for seasoned investors. A Brinson, Hood, and Beebower Study shows that almost 94% of your returns come from your asset allocation, not market timing. So focus on a steady, consistent strategy instead.
