Use money you can afford to put at risk

Keep money for essential bills and near-term needs separate from investments. Share prices can fall sharply, and recovery is not guaranteed.

Spread your exposure

Diversification means holding different investments. Broad funds can make this easier, although a narrow sector fund may still be concentrated. Diversification reduces some risks; it cannot remove all losses.

Know what a stop can do

A stop order normally becomes a market order when triggered. The final sale price can be worse than the stop price if the market gaps or moves quickly. A stop-limit order can fail to execute.

Avoid borrowed-money trading

Leverage increases losses as well as gains. For a beginner, understanding ordinary shares and diversified funds is a more useful starting point than complex leveraged products.

Sources and further reading

Provider settings and financial products can change. Check original sources before acting. These guides explain concepts and do not recommend individual investments.