Investing can feel intimidating, but making smart decisions with your money can help you achieve financial success. This article offers Investment tips for newcomers, including the importance of diversification, understanding your risk tolerance, managing fees and maintaining a long-term perspective. By following these simple investing steps, you can set yourself up for sustainable growth and meet your financial goals.

Don’t chase trends.

Chasing investment fads can lead to buying overvalued assets that will quickly lose value. Investors are often swayed by hype and the promise of quick gains, but avoiding these temptations can reduce your exposure to loss and increase your potential for profit.

Focus on quality.

Trying to make a fortune through stock trading requires savvy, research and luck—and an ability to ignore the noise of short-term market fluctuations. Instead, look for solid companies with a competitive advantage like barriers to entry, protected intellectual property and management competence. This approach will help you find good, stable companies that are more likely to grow earnings and stock prices over time.

Stick to your plan.

Successful investors establish a plan based on their age, risk tolerance, and level of wealth and stick to it. This helps them stay calm and unemotional when the market gets bumpy, reducing their temptation to sell at inopportune moments. In addition, it’s important to avoid dipping into your investments for non-investment expenses. Rather, save for these expenses in an emergency fund or other low-cost savings vehicle to minimize the impact on your long-term portfolio.