STRATEGY AND THINKING

Spreading your investments across different sectors, industries, and asset classes can help reduce risk, which is why we encourage you to invest in ETFs and index funds. They help protect your portfolio from significant losses if one investment performs poorly.

Every investor has a unique risk tolerance, which is the level of risk they are comfortable with. Effective risk management ensures that investment strategies are aligned with the investor's risk tolerance, helping to avoid mistakes during market fluctuations.

Plan your exit strategy before entering any investment. Determine your profit-taking and stop-loss points to avoid holding onto an investment blindly. This strategy provides a predetermined plan to limit potential losses and protect capital.

Embracing contrarian thinking offers several benefits that can lead to more successful outcomes. Sometimes, the best investment opportunities can arise when others are pessimistic about the market or a particular asset.

Market history provides insights into the cyclical nature of financial markets. By studying past market cycles, investors can identify patterns and trends that can help them anticipate potential market movements and make informed decisions.

Using paper money, also known as paper trading or virtual trading, when you first start trading is crucial. It allows you to understand market behavior, gain confidence in your investing abilities, assess risk tolerance, and explore different markets and assets.