This. Always consider what happens if you lose your investment/ what is your worst liability. Be skeptical about assuming that events (e.g. different kinds of s

This. Always consider what happens if you lose your investment/ what is your worst liability. Be skeptical about assuming that events (e.g. different kinds of securities crashing) are independent. That is one of the usual assumptions asset managers persuade the world and perhaps themselves that has been a factor in multiple crises. Finally, I am a big proponent of Graham's approach that the risk you can take is proportional to your time investment and focus, i.e. analysis and research you have done. Markets change. The idea is to be able to survive the russian roulette in the process. You might be able to afford some debt now, but will you be able to in the future, if e.g. your currency crashes? For instance, several profitable Turkish businesses are on the hook now, as they signed U.S. dollar based loans. Tip1: If a position on a security appears hot now, and people commonly buy it, it is probably overvalued. Tip2: Learn to skip opportunities. Invest in areas where you have done your research and know. Tip3: Assume the person in front of you always has a financial interest in convincing you to buy or sell -- except if they have a fiduciary responsibility to you by law (and still pick advisors carefully).