A golden rule of investing

Investing has a lot of risks, and with those risks come reward, but that doesn't mean you should forget about the risks involved.

As a student myself, money is quite scarce to come buy, and I do have some expenses to cover. So here is one of my golden rules of investing.

Don't invest money you're not willing to lose!

Making money of investing is great, but if you're not proficient in making constant gains, then don't expect every investment you make to go well. For new investors losing money might be a regular problem as they start off, and if you've thrown all your life savings into it, it's bound to end in disaster.

TIP: Invest in a basic ETF to make sure your money is managed by people who know how, this is bound to reap you rewards, especially when starting out.

I've seen a few people invest a lot of hard earned money into a stock of some news that it will spike and then the company fails or it has a bad finacial report and their whole investment is down in the dumps. This is a risk all investors face, especially new and uninformed ones.

Using money you're willing to lose also prevents you from unnecessarily experiencing stress, it stops you from constantly checking your portfolio like a hawk when it's really not necessary. Refrain from checking on your portfolio more than a few times a day, because this prevents you from stressing, while at the same time getting updates on what the markets are doing. (besides reading the news.)

Money is a valuable asset to everyone, but if you mismanage it, then it might as well have no value.