Are you new to investing? The Bible tells us that saving for the future is a wise thing to do. Investing can help you with long-term savings needs, like retirement. The stock market can feel like a rollercoaster, but with the right strategies, you can navigate the ride with confidence. Here are six pieces of advice for those starting their investment journey.

1. Learn the basics.

Before you start investing, it’s important to understand some basic concepts: stocks, bonds, mutual funds, ETFs, and diversification. Don’t worry if this all feels overwhelming at first. You will catch on quickly. Start with simple resources like books and podcasts. The more you learn, the more confident you’ll feel.

2. Don’t put all your eggs in one basket.

Many new investors start by purchasing one or two “hot” stocks. Be careful. One of the golden rules of investing is diversification. Rather than betting all your money on one stock, spread your investments across different sectors, industries, and asset classes. This helps reduce risk and smooths out the market's ups and downs. Consider investing in broad index funds or exchange-traded funds (ETFs) that track the performance of the entire market or a particular sector.

3. Invest for the long haul.

The stock market can be volatile in the short term, but historically, it has risen over the long term. Resist the temptation to check your portfolio daily and react to market ups or downs. Instead, stay focused on long-term growth and remain invested. As the saying goes, “Time in the market beats timing the market.”

4. Understand your risk tolerance.

Every person has a different risk tolerance. Some people are comfortable with the ups and downs, and others prefer greater stability. Risk tolerance helps determine asset allocation (how much you invest in stocks versus safer assets like bonds). Start with a mix that aligns with your comfort level and financial goals. Sometimes, meeting with a Kingdom Advisor can help you determine what allocation aligns with your risk tolerance.

5. Automate your investing.

If you’re new to investing, one of the best things you can do is automate your contributions. Set up regular, automatic deposits into your investment accounts. Whether it’s $100 or $500 a month, automating your investments ensures you stay consistent and take advantage of dollar-cost averaging. Dollar-cost averaging is a strategy where you invest the same amount regularly, buying more shares when prices are low and fewer when they’re high.

6. Avoid emotional investing. 

Emotional investing causes a lot of new (and some old) investors to make costly mistakes. When the market drops, selling off your investments in a panic is tempting. When it rises, it’s tempting to buy in at the top. However, emotional investing rarely leads to good outcomes. Stick to your long-term plan, don’t chase trends, and resist the urge to react impulsively to short-term market ups and downs.

Congratulations on starting your investment journey. Investing is a marathon, not a sprint. By educating yourself, diversifying your investments, and sticking to a long-term plan, you’ll be on your way to benefiting from wise investing.