Don’t Put All Your Eggs In One Basket
How does this stock market for beginners rule have to do with investing? There are so many investors who only buys stocks, who only buys stocks in a specific sector, who only buys stocks of national companies. It’s a big mistake. One of the first rules investors learn is to diversify their investments. That means not to only buy stocks but to also buy bonds and CDs and even holding some of their money as cash. That means not to buy stocks in one sector but to spread out your investments in different sectors. And that means to buy stocks of companies that are internationally exposed.
