Diversification

Markets crash all the time. You should, at minimum, expect stocks to fall at least 10% once a year, 20% once every few years, 30% or more once or twice a decade, and 50% or more once or twice during your lifetime. Those who don't understand this will eventually learn it the hard way.

Someone emailed me last week asking why this is:

Dollar-Cost Averaging

So, what is dollar-cost averaging?

     Dollar-Cost Averaging: The technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price.

            -Investopedia