Keeping your risk tolerance in mind can help you steer clear of riskier strategies, like buying “on margin” (with borrowed money) or trading options, where you can lose more than your initial investment. Designed to amplify potential returns, these strategies also magnify risk.

3. Consider your investing time horizon

When planning your investment strategy, consider your age and life circumstances. Younger investors are often comfortable taking on more risk because they have plenty of time to recover from market downturns without losses affecting their assets, like real estate or retirement savings. As people get closer to retiring, they often shift their portfolio towards more conservative investments—for example, fewer stocks and more bonds. If you need help with determining your asset allocation, consider consulting a financial planner.

No matter your stage of life, if you decide to pursue higher-risk investments—such as cryptocurrencies or shares in startup companies—it’s smart to limit your exposure to an amount you can afford to lose.

4. Find credible investment research

Many people are getting investing ideas from Facebook, Instagram, TikTok and other social media platforms. Often, however, online investing information is superficial, incorrect, misleading or biased—meaning that investors still need to do their research.

Where should you look for investing guidance? In the past, only the most affluent Canadians had access to high-quality investment research. Now, however, affordable help is at hand, regardless of the size of your portfolio.

One example is Motley Fool Stock Advisor Canada. Motley Fool is a private financial and investing advice company, and Stock Advisor Canada is one of its premium members-only services. More than 70,000 members visit the site for investment ideas, independent analysis and educational materials.

Stock Advisor Canada does the research for you, so you can consider the pros and cons of each stock. “Starter Stocks” are Motley Fool’s foundational picks, which may be suitable for the core of your portfolio. “Best Buys Now” are timely trading opportunities chosen from a universe of more than 150 stocks.

New members can join for an introductory price of $99 (after the first year, the fee is $299). Each month, you’ll receive two fresh investment ideas, one Canadian and one American. You’ll get access to an extensive library of research—including reports, videos and podcasts—and a members-only forum where investors discuss ideas, ask questions and gather market intelligence. It’s like social media for investors, but without the scammers.

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