Investing responsibly ensures that your family’s finances, your credit score, and your mental health remain intact throughout your investment journey. We’ve assembled a few useful guidelines below.
- Never invest more capital than you can afford to lose – the Golden Rule of investing. Make sure you set money aside for a rainy day.
- Shorting can cause unlimited losses – short-selling allows you to profit from falling prices, but means you’ll lose out if prices rise. Prices have no upper ceiling, so potential losses are technically unlimited. Manage your risk.
- Look for regulated services – unlicensed exchanges and brokers may not require KYC checks, but you’re on your own if something goes wrong. Regulated platforms are always safer.
- Don’t be irresponsible – by putting too much at risk, you could damage your credit score, your family’s finances, and your mental health. Getting into debt is a slippery slope: get help if you’re struggling.
If you want to learn more, or need help, please consult the following resources: