The biggest mistake beginner investors make is putting all their money into one or two stocks. If that company has a bad quarter, your entire portfolio suffers.

Diversification means spreading your investments across:

• Multiple stocks — Own at least 8-15 different stocks
• Different sectors — IT, Pharma, FMCG, Auto, etc. Don't concentrate in one industry
• Different market caps — Mix of large cap (stable), mid cap (growth), and small cap (high potential but risky)
• Different asset classes — Stocks + Gold + Real Estate (all can be halal)

A well-diversified portfolio can fall 10-15% in a market crash instead of 40-50% for a concentrated one.