Don't put all your eggs in one basket

Diversify

Putting all your eggs in one basket is rarely a good idea. That's why most experts recommend that you diversify, or spread out your investments. With the high risk involved, you really don't want to put all your cash in the stock market. Why? Well, the market is volatile and no stock is a sure thing. If you put all your money there and lose it, you might be ruined. By spreading your money out between both low- and high-risk items, you won't lose everything if your investment goes bad. At certain stages of your life you should adjust the diversity of your investments. When you're younger you may invest in higher-risk items, since you'll have plenty of time to make up any lost money if the investment fails. As you get older, you'll only want to invest in lower-risk items because your window of opportunity to recover your losses is closing.