To The Moon

1. Diversify your holdings

When investing in stocks, the idea is to invest in many different companies in different industries. When a company goes bankrupt, investors lose money; however, if they diversify their investments and hold shares of several different businesses, they will not lose everything at once. By holding different types of assets, the chances of losing money decreases significantly. If a company fails, the shareholder may only lose money invested in that particular company, while still being able to keep their investments intact.

2. Don't put all your eggs in one basket

If someone were to put all of their money into one investment, then when that investment loses value, they will have no other way of getting back what was lost. Instead, they should spread out their funds across various small, individual investments. Each small investment provides little risk, but together, they all add up to a larger amount of wealth.

3. Invest in quality over quantity

While it's true that more stocks generally mean higher returns, it is also true that quality over quantity often wins out. For example, people who buy only Apple products tend to think that they are superior and more innovative than those who purchase Samsung phones. While this might be true, it does not necessarily make them better devices. In fact, some research has shown that high-quality products cost much more than low-quality ones, and thus end up costing consumers more money. To avoid this problem, just stick to buying good products rather than trying to get more bang for your buck.

4. Do your own research

It is important to do your own research before making any investments. A lack of knowledge is the leading cause of financial problems, so always make sure you know what you're doing. Ask questions about business practices, industry trends, and even the laws surrounding certain products. Being informed helps you make smart decisions instead of quick decisions. You don't want to find yourself in a situation where you bought something without knowing anything about it, and now you are forced to sell it at a loss.

5. Be careful of penny stocks

Penny stocks are stocks that trade for literal pennies per share. These stocks are considered risky and volatile, and tend to follow the fluctuations of the market. Companies that go bankrupt frequently become penny stocks and offer poor potential profits. Thus, staying away from these stocks is recommended.

6. Watch out for scams

Never invest money you cannot afford to lose, and never invest in a product based solely on hype. People often try to deceive others by selling things that seem great, but aren't actually worth the money. Always look for proven results first, and only invest in something after seeing how well it performs.