The recently released movie 'Dumb Money', about a YouTube content creator who encourages his followers to invest in heavily-shorted stocks, has sparked an interest in investing among the masses. While it may seem tempting to follow the latest investing fads, a more prudent approach is to focus on mastering the art of better investing.
To invest better, it is crucial to invest regularly. Regular investments help to average out market fluctuations, reducing the impact of short-term volatility on your portfolio. By investing a fixed amount consistently, you can take advantage of dollar-cost averaging and potentially achieve better long-term results.
Diversification is another key aspect of better investing. A diversified investment portfolio spreads risk across different asset classes, sectors, and geographical regions. By avoiding concentration in a single investment, you reduce the impact of any one investment's poor performance on your overall portfolio.