3 Simple Rules of Investing (Beginner)
It boils down to how long you’re invested in the market rather than trying to time the market. Don’t get me wrong; sometimes, timing the market can provide excellent entry points to buy more stocks. Big profits can also come from instruments like short-term options. However, in my 10 years of experience in finance, managing over $XX million in assets under management (AUM), I’ve realized that those who stay invested for the long term generally perform better than those who engage in short-term investing, swing trading, or day trading.
In fact, many people are reluctant to show their losses rather than their wins. I’ve tried short-term trading many times and have seen accounts wiped out repeatedly. It’s time-consuming, requires a lot of precision, and demands emotional control (e.g., chasing wins/losses). In my observation, most people tend to cross the line into “gambling” or “waiting for a jackpot” rather than genuinely investing.
Warren Buffett is a classic example of staying invested and winning. Consider ETFs like $SPDR S&P 500 ETF (SPY.US)$ $Vanguard S&P 500 ETF (VOO.US)$ $iShares Core S&P 500 ETF (IVV.US)$ $Berkshire Hathaway-A (BRK.A.US)$
If you’re still young, you have the opportunity to ride through several market cycles before retirement, making it one of the best ways to beat inflation and grow your money. Kopi used to cost $0.80; now it’s around $1.60? (a 100% increase). Did our salary or bank interest grow that fast?
Disclaimer: This may not apply to professional stock pickers, options traders, or day traders.
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Rule Number 2: Learn, Unlearn, Relearn, then Earn
As cliché as it may sound, one of the best tips is to keep learning. Navigating through the Moo app, I discovered tons of excellent materials that could make someone a diploma holder in investing. You can find more under [Discover - Learn - Stocks - Courses - Beginner Finance.] There are many golden nuggets available for us to learn. Even if you’re familiar with some of the material, it’s always good to unlearn and relearn basic concepts.
Disclaimer: This may not apply to professional stock pickers, options traders, or day traders.
As cliché as it may sound, one of the best tips is to keep learning. Navigating through the Moo app, I discovered tons of excellent materials that could make someone a diploma holder in investing. You can find more under [Discover - Learn - Stocks - Courses - Beginner Finance.] There are many golden nuggets available for us to learn. Even if you’re familiar with some of the material, it’s always good to unlearn and relearn basic concepts.
For beginners, I suggest starting with a beginner finance course, then moving on to fundamental analysis (analyzing company financials such as EPS, current ratio, cash flow, etc.), and finally to technical analysis (charting by timeframe). With information readily available and the growth of AI, learning is now much simpler and more accessible. Consider spending 2–3 hours on a weekend learning if you’re serious about EARNING![]()
. Personally I spend 30mins daily to read through news to learn about our macro environment. When we learn, we at least stand a chance of understanding what we’re buying and why. Fair enough?
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Rule Number 3: Practice Dollar-Cost Averaging and Diversification
This simply means setting aside a fixed amount on a monthly basis to invest in companies or ETFs that you know and like. One month, 1 time; one year, 12 times. This way, your risk is spread and minimized compared to investing all your money at once (though there’s nothing wrong with that—it’s just about balancing risk and reward in the long run). This practice can help build discipline in achieving your goals and building your capital. If you don’t have time to monitor the market 24/7, especially the US market (9:30 pm–4:00 am), diversification into large-cap stocks or ETFs can help you feel less worried. Before you invest, ask yourself three simple questions:
1. What’s my goal and time horizon?
2. What level of yield and losses am I willing to accept?
3. What’s my risk appetite—conservative, aggressive, or balanced?
There’s no right or wrong answer, as long as you answer authentically. If you do, I’m thrilled and excited for you.
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Of course, there’s much more to learn on our investment journey, but this is a general guide I genuinely wanted to share. Wishing you the best on your journey!
This simply means setting aside a fixed amount on a monthly basis to invest in companies or ETFs that you know and like. One month, 1 time; one year, 12 times. This way, your risk is spread and minimized compared to investing all your money at once (though there’s nothing wrong with that—it’s just about balancing risk and reward in the long run). This practice can help build discipline in achieving your goals and building your capital. If you don’t have time to monitor the market 24/7, especially the US market (9:30 pm–4:00 am), diversification into large-cap stocks or ETFs can help you feel less worried. Before you invest, ask yourself three simple questions:
1. What’s my goal and time horizon?
2. What level of yield and losses am I willing to accept?
3. What’s my risk appetite—conservative, aggressive, or balanced?
There’s no right or wrong answer, as long as you answer authentically. If you do, I’m thrilled and excited for you.
$S&P 500 Index (.SPX.US)$ $iShares Core S&P 500 ETF (IVV.US)$ $Vanguard S&P 500 ETF (VOO.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$ $NASDAQ 100 Index (.NDX.US)$ $Microsoft (MSFT.US)$ $McDonald's (MCD.US)$ $Apple (AAPL.US)$ $iShares Russell 2000 ETF (IWM.US)$ $Tesla (TSLA.US)$ $NVIDIA (NVDA.US)$ $Broadcom (AVGO.US)$ $Amazon (AMZN.US)$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Hi I’m @whyalwayschin. Investment Mantra: Swim with the big boys!
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Huang he : This is a sincere suggestion.
Dan’l : Don’t get me wrong: I appreciate your efforts to help others, and mostly agree, buUut… a few thoughts:
Invest in good companies, and stay well-informed about them. (I do *lots* of trading, selling at their highs, and buying back even more during lows.)
Look to ultimately open tax-deferred accounts, most especially if you’re able to use pre-tax incomes.
Invest what you can afford to; not what you can’t, or won’t, leave at least until it’s a good time to sell your position(s).
Never “yank your money” in a panic, while the markets are down… that’s usually the right time to put money in.
Don’t lose sight of your goals (but don’t forget to be generous along the way ~;-)
Bear Bear Craig OP Dan’l : Great insights! And yes to buying strong companies
Dan’l Bear Bear Craig OP : Indeed, and the cold/hard facts of assets/liabilities don’t always reflect the value of folks’ character/ingenuity.
Continue, among them ~;-)
Bear Bear Craig OP : If you have chosen $0.10 that double up everyday for 30 days, congrats! that’s a whopping $53Million on day 30!
Coach Donnie : If you’re new to investing and want some tips let me know