Rules to follow when investing

I believe that there are no set formulas for successful investing, no two individual are alike in their approach to investing, for each person is unique in dealing with financial matters.

But before plunging yourself in the world of investment consider some of these important things.

1. Investing in stock market is a risky process you might loss the sleeve of your shirt or the whole of your shirt. That's why before putting your hard earn money be sure you have something liquid (cash) for example you may wish to keep equivalent of six months of your monthly expenses for emergencies like loss of job and medical needs, until then it is safe for you to build your investment portfolio.

2.Plan ahead, What's your goal in investing? Is it for a long term or short term. How would you approach to invest, is it high risk, medium risk or low risk? Every investment involves some risk that you'll lose money in it.

3.I believe in the saying " Do not put all your eggs in one basket" If you accidentally drop that basket all the eggs might be broken, this saying refers to putting all your money into one type of investment. Diversify is the key to safer investing. It's not a good idea to invest in the stock of one company or stocks of companies within one industry or sectors. Spread your risk, you may not make quite as much money in a range of companies as you would with an investment in a single one if that one does well, but the risk is less. The more diversify you are, the safer for you as a beginner.