"1. Start simple - you don't need to be a trader "You can make it extremely complicated if you're a trader, but you don't have to be," Ellard-King said. Rather than spending hours glued to screens and options, he recommended mainly investing your money in index funds that track the broader market. "Just let the smartest companies in the world do their thing," he said."
"2. Appreciate that your portfolio will sometimes dip Beginners often assume they'll lose money as soon as they invest, in part because of the ubiquity of warnings that "your capital is at risk," Ellard-King said. Even if the market drops close to retirement, you probably still would have done a lot better than if you had put all your money in savings, where the returns are usually much lower, he said."
"3. When you invest in stocks, look at industries you know Ellard-King said he kept most of his money in index funds, but when he does buy individual stocks, he invests in areas, like fintech and e-commerce, which he understands. Beginners should consider investing in areas where they work or have relevant experience, he said. For him, buying into AI feels like putting"
Begin investing with simplicity, avoiding active trading and excessive screen time. Prioritize broad market index funds to capture growth from leading companies. Expect periodic portfolio declines and accept volatility as part of market behavior. Maintain regular contributions and think in terms of decades rather than days to mitigate short-term losses. When selecting individual stocks, concentrate on sectors where there is personal knowledge or work experience, such as fintech or e-commerce. Recognize that even market drops near retirement often outperform keeping funds in low-return savings accounts.
Read at Business Insider
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