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Investor memo

It is never advisable to invest everything you have in securities

Remember to leave money aside for living and unexpected expenses; create a “safety cushion” and only start trading once you’ve done that. Invest only what you can afford to lose.

Don’t act randomly – take training

If you decide to trade on the exchange yourself, make sure you know what you’re doing. Most brokers can offer courses for beginners.

Don’t give in to emotions

Acting on impulse can lead to mistakes. Never react rashly to any slight change in exchange prices. However, you will have to act decisively if prices change significantly. Set a limit that you can afford to lose: for example, if asset prices fall by 20%, you need to sell and, as they say on the stock exchange, fix the losses.

Don’t put all your eggs in one basket

It is better to buy securities of companies from a range of industries. For example, when oil prices fall, the share price for all companies in that sector suffer. Trading in company shares from different sectors will help you reduce the risk of losing your investment (or, as financiers say, diversify your risks).

Don’t trust promises to make 100% a day

Only fraudsters can guarantee anything on the stock market. A responsible broker should warn you about the risks. Exchanges can be unpredictable, and you alone are responsible for your decisions.