Q&A with Apricot: What to remember when starting to invest

Welcome to the “Q&A with Apricot” series, where we address the most frequently asked questions about investing. Today, we’re discussing a topic that is important for any beginner investor: What to remember when starting to invest.

There are fundamental principles that will help you make more confident decisions and achieve your financial goals.

• 1. Define your goals

Before you invest, clarify why you are investing. What are your goals? Is it to build capital for retirement, save up to buy a home, or put money away for a child’s education? Each goal has its own timeline and level of risk tolerance. Clarifying your goals will help you choose the right investment strategy for you and understand your investment horizon.

• 2. Start early and be consistent

Time is the greatest advantage in investing. Starting early allows you to benefit from the power of compound interest, which we discussed in detail in one of our previous posts. Regardless of how much you invest, regular and consistent contributions can significantly grow your capital over the long term.

• 3. Diversify your portfolio

This is one of the most important investment principles. Diversification means spreading your investments across different assets, sectors, and geographic regions. It helps reduce risk: if one part of your portfolio performs poorly, the other parts may be able to offset that. Don’t put all your eggs in one basket.

• 4. Educate yourself and follow the news

Successful investors are always learning. You can do that with the Apricot Academy section of our website. Follow market news (for example with Investor’s brief), read financial reports, and understand the companies you are investing in. We discussed what reports and announcements investors follow in one of our previous posts. It’s important to understand the goals behind your investments, rather than following “trendy” movements or advice circulating online.

• 5. Stay calm and avoid emotional decisions

Markets have volatility, and that’s normal. One of the biggest mistakes in investing is making decisions based on emotions, such as selling in a panic during a downturn or taking on excessive risk during a bull market. Always stick to your long-term strategy.

• 6. Understand the relationship between risk and return

Remember that a high potential for return implies a higher risk. Your investment portfolio should align with your risk tolerance. If you are not prepared for potential losses, then lower-risk instruments are more suitable for you.

• 7. Choose a broker that suits your needs

One of the most crucial steps on your investment journey is choosing a reliable broker that meets your needs. Pay attention to the available markets, commissions, quality of support, and the tools provided. For example, Apricot Capital offers access to over 40 global markets with low commissions and no service or withdrawal fees. 

These best practices can help you manage your investments with a stronger foundation and greater confidence.

Ready to Start Investing?

Open a brokerage account for free and download our Apricot app from the App Store or Google Play. Learn more about investing in Apricot Academy. 

It’s important to remember that investments are subject to market fluctuations and carry inherent risks. Consider your financial goals and risk tolerance before investing.

Apricot Capital is regulated by the Central bank of Armenia.

*The examples in this text are for illustrative purposes only. This does not constitute investment advice or a recommendation to buy or sell any specific investment instrument. The past performance mentioned in this text is not indicative of future results.