Investing in the stock market can seem daunting, but it's a powerful tool for growing your wealth over time. One of the most fundamental principles for any new investor is diversification. Simply put, diversification means not putting all your eggs in one basket. When you spread your investments across different companies, industries, and even asset classes, you reduce your overall risk. If one investment performs poorly, the others may perform well, balancing out your portfolio. For example, instead of investing solely in tech stocks, consider adding some from utilities, healthcare, or consumer goods. Start small, do your research, and consider consulting a financial advisor to help you build a diversified portfolio that aligns with your financial goals and risk tolerance. Remember, investing is a long-term game, and patience is key.
