What is diversification?

Diversification spreads investments across assets (e.g., stocks, bonds, commodities) so no single holding dominates risk.

What is dollar-cost averaging (DCA)?

DCA means investing the same amount on a schedule, which smooths entry price over time and reduces timing risk.

Are ETFs good for beginners?

ETFs are baskets that trade like stocks and can offer diversified exposure at low cost. Always check fees, liquidity, and tracking.

FoundationsRiskETFs

Investing Basics — A quick, visual start

Understand the stock market, build a simple plan, and see DCA, asset mix, and ETF essentials at a glance.

Market Basics

Stocks represent ownership; returns come from price change + dividends.

Risk First

Decide risk per trade/account before you decide what to buy.

Learn by Doing

Start small, review weekly, and iterate your plan.

Example Asset Mix (Illustrative)

Equities · 60%

Bonds · 30%

Cash · 10%

Illustrative only — choose an allocation that matches your time horizon & risk.

DCA vs Lump Sum (Illustrative Path)

Lump Sum DCA

DCA smooths timing; lump sum can outperform in strong uptrends. Use what fits your plan.

Risk Ladder (Example)

ConservativeLow vol

BalancedMedium vol

GrowthHigher vol

Pick a lane that matches your timeframe and drawdown comfort.

What is the Stock Market?

A marketplace for ownership shares in companies. Your return comes from price changes and dividends.

Stock: a share of ownership.
Dividend: profits distributed to shareholders.
Bull/Bear: extended rising/falling periods.
ETF: a basket that trades like a stock.

Dollar-Cost Averaging (DCA)

Invest a fixed amount on a schedule regardless of market moves, smoothing your average entry price.

Educational only — consider fees, taxes, and suitability.

ETFs in One Minute

Exchange-traded funds hold baskets of assets and trade intraday. Most track indexes; some are active or leveraged. Check tracking, fees, and liquidity.

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Best-Practice Checklist

Define goals, horizon, and max drawdown you can accept.
Automate contributions (DCA) and keep position sizes consistent.
Review weekly; adjust risk, not emotions.