Before you start investing, it's crucial to understand the basics of investing, different asset classes (stocks, bonds, real estate, etc.), and the associated risks. Are you investing for retirement, buying a home, or building an emergency fund? Your goals will help shape your investment strategy.
Don't put all your eggs in one basket. Diversification means spreading your investments across different asset classes (stocks, bonds, real estate) and within those classes (different companies or industries). This helps reduce risk.