Do list
- Do start with an emergency fund: 3-6 month expenses in cash first.markets cash, life doesn’t.
- Do invest for 5+ years: stocks reward patience. short term = gambling.
- Do diversify: don’t put everything in one company. use ETFs or 5-8 diffrent stocks/sectors.
- Do invest monthly: same amount every month no matter what. this is DCA and it beats timimg the market.
- Do know what you own: if you can’t explane what the company does in 2 sentences, don’t buy it.
- Do keep fee low: compare broker fees. high fees kill returns over time.
- Do expect drops: 20-30% crashes happen every few years. it’s normal, not the end.
Don’t do list
- Don’t use borrowed money: Margin loans + credit cards = disaster if market falls.
- Don’t panic sell: Red days feel scary, but selling at a loss locks it in. biggest gains often come right after biggest drops.
- Don’t chase “hot tips”. If your taxi driver and WhatsApp group are talking about it, you are already late.
- Don’t put > 10% in one stock as a beginner: One bad company can wreck your whole portfolio.
- Don’t check prices daily: It triggers emotional decisions. check monthly max.
- Don’t invest money you need <3 years: Market can be down when you need cash. use FD/savings for short term goals.
- Don’t think you can time the top/bottom: no one can, consistently. even pros fail.
