What to know BEFORE Investing in Stocks

All investments involve some degree of risk. If you intend to purchase securities - such as stocks, bonds, or mutual funds - it's important that you understand before you invest that you could lose some or all of your money. Unlike deposits at FDIC-insured banks and NCUA-insured credit unions, the money you invest in securities typically is not federally insured. You could lose your principal, which is the amount you've invested. That’s true even if you purchase your investments through a bank.
The reward for taking on risk is the potential for a greater investment return. If you have a financial goal with a long time horizon, you are likely to make more money by carefully investing in asset categories with greater risk, like stocks or bonds, rather than restricting your investments to assets with less risk, like cash equivalents. On the other hand, investing solely in cash investments may be appropriate for short-term financial goals. The principal concern for individuals investing in cash equivalents is inflation risk, which is the risk that inflation will outpace and erode returns over time.

As a critical part of your planning process, you should determine your own risk tolerance. How much you can be prepared to lose should a prospective investment decline in value, and how much ongoing price volatility in your investments you can accept without inducing

It is essential to understand your goals and objectives prior to investing. Knowing your objectives will help you choose an investment to help you achieve them, whether they are to finance retirement, buy a home, or start a new business. It is crucial to comprehend the investment you are prospecting for as well as the fundamentals of investing, including risks, fees, and costs.

Choosing the best assets or investing strategy can be difficult for new investors, and there is as much variety in the advice available as there are products available. Despite the numerous tips, developing your knowledge and having a firm grasp of investing and your goals are essential for making decisions that are likely to produce positive outcomes.

DISCLAIMER:
This channel is for educational purpose only. All videos, presentations and writing are for only educational purposes, and are not intended as investment advise
You can implement this while investing at your own risk and after consulting your financial advisor.