My five do’s and don’ts for first-time investing

Hi, my name is Hannah Barnaby; I’m 26 and training to be a primary school teacher.  

I’ve been investing in funds for around five years now and find the content and shared experience on DIY Investor.net invaluable. I want to share five key things I’ve learned so far.

1. Don’t invest in anything you don’t understand

It’s crucial that you take time to get your head around exactly what your money is invested in and the level of risk involved. If you don’t understand, steer clear. 

2. Do diversify

Investing internationally across a wide range of companies and currencies should cushion your money from stock market shocks. 

3. Don’t follow the herd

Hearing about big gains friends have made could tempt you to pile in. Investing in sectors or companies that have seen share prices rise quickly means you’re buying when the price is already very high. Do your own research about how you think you can grow your money. 

4. Do invest regularly

Investing monthly into your chosen funds will help you smooth out the highs and lows in share prices. When they go up, the value of your stocks rise – and when they go down, your next contribution buys more. 

5. Don’t buy an investment that promises generous returns ‘risk-free’

Such a promise should ring alarm bells. Be wary of companies which call or email out of the blue and put you under pressure to part with your money. 

Much more financial education here >