Guides · Getting started
How much money should you put in the stock market?
In short: Only invest money you won't need for 5 to 10 years, after keeping an emergency fund. Also ask yourself: if this amount fell 40%, could I hold on without selling?
Emergency fund first
A car repair or a job loss must never force you to sell at the worst moment. Keep a few months of expenses in an accessible savings account first.
The drop test
Picture your investment at -40%, as in 2008 or early 2020. If you would lose sleep or sell, the amount is too large for you.
Time horizon
Over one year a stock can lose a lot. Over 15 to 20 years, diversified markets have historically almost always ended higher, but it is not guaranteed.
FAQ
Should I borrow to invest?
It is very risky: you can lose in the market while still having to repay the loan. Not suitable for beginners.