Spread your
risk around

As we said, the general trend for markets and stocks is up up up. But they can go the other way, too.

Even well-run companies make mistakes. They get lazy or become uninspired. A competitor might swoop in and make their flagship product obsolete. So it’s wise to spread your risk between multiple stocks and industries.

So if, say, your investment in that fast food chain declines due to new competition, your investment in that hot, new AI-powered robot manufacturer will help balance out your losses.