... returns for investors, the opposite is also true. It’s easy to incur sustained losses by investing in an asset that behaves unexpectedly. Investors should always take the time to attempt to understand what they want to hold. Avoid Complacency The value of investments will fluctuate, leading to declines in fund prices as well as increases, and you may not get back the initial amount you invested. Past performance is not indicative of future results. Investments can increase or decrease in value due to fluctuations ...

... economic factors (economic crises, inflation, interest rate changes), political factors (government instability, legal changes, sanctions), and various force majeure events (such as natural disasters or pandemics). Such events can negatively impact the value of investments, even if the chosen instruments themselves are reliable. Risk of Asset Price Decline One of the most obvious market risks is the risk of a decline in the market price of a purchased asset. Simply put, you have bought a stock, bond, real estate,...

... analysis. Below are some well-known books that will be useful for a novice investor: "The Intelligent Investor" (Benjamin Graham). This book, written by one of the progenitors of the fundamental approach, is considered a reference book on value investing. Graham explains in simple terms the principles of securities analysis, the concept of the "margin of safety", the psychology of investing and gives advice that has been relevant for many decades. "Common Stocks, Uncommon Profits" ...

... choosing not only stocks but also bonds, bills, bank certificates, options, etc. It's also important to consider different sectors, currencies, and countries for investment. Do not abruptly change strategy and sell securities in response to a drop in asset value. Avoid panic; sound investing is only achievable with a clear head. The same applies to impulsive decisions — resist succumbing to them. Begin investing as early as possible. Professionals do this regularly, facilitating the accumulation of capital by retirement. This ...

... Emotional decisions and excitement. Financial markets are subject to ups and downs, and investing is closely related to psychology. A common mistake is to panic when prices fall or fall into euphoria when they grow. Fearing a temporary decrease in the value of investments, beginners can sell them at the “bottom” and fix the loss. Or, on the contrary, they get involved in mass excitement, buying overheated assets at the very peak of the price out of fear of missing out on profit. Such emotional actions prevent ...