1. Invest in Stocks at a young age
While Bonds are a safer bet, stocks actually provide a higher return. They are more risky than bonds as well, but being young only helps you in the long run because you can take on more risk.
2. Mitigate Losses and Diversify
If your stock takes a tumble of over 10%, think of moving your money elsewhere. Make sure you have investments in different markets, and in stocks that have high dividend yields.
"Diversification is protection against ignorance. It makes little sense if you know what you are doing." - Warren Buffett
3. If you don’t know where to Invest, Start with Indexes
Indexes are a great start for new investors, they give you a piece of the market without having to invest in one company. It’s a great way to lower your risk, and involves less research. Choose ETFs over Mutual Funds for lower fees.
4. If you invest in Stocks for over 10 years you will see positive gains
The chart below presented in Burton Malkiel's, The Random Walk Guide to Investing, shows you that after 10 years your return will be at least 1.24%. This just shows the benefits of investing early for a long period of time.
5. Watch the Market, but don’t Obsess
If you’re looking to not worry about your money and grow your savings, keep watch of the market and the news, especially the stocks you own. However, don’t obsess over market news because it’s always volatile. Only worry if something big happens.