Mr Cheong's tips
READ & RESEARCH
Mr Cheong Wen Quan says he wished he had started reading about investing earlier in life.
"It's good for new investors to always be curious," he says.
"Read more about the industry, its dynamics and understand the business as if you are the business owner."
He also says you should educate yourself by speaking to those who have invested in the company which you are looking to buy into.
He adds: "It will also be beneficial for an investor to check if the company has treated its shareholders well (in the past).
"Some simple due diligence will go a long way."
When it comes to popular stocks, Mr Cheong says he would question why these stocks are attractive.
"I always ask myself, 'If a stock seems attractive, why do you think the other person is selling it to you?'
"Another question I ask myself is, 'Why am I right and the other person wrong?'."
Mr Cheong says investors will buy into a company if they think it is going to do well.
"But just before I buy the stock, I'll ask myself why the seller doesn't think this company has the potential to soar."
IF YOU'VE GOT NO TIME...
"Always focus on protecting your downside, but if you have no time to do extensive research, there is another way," he says.
Investors can cut their losses if they don't develop such a high-risk portfolio.
He says: "If you have no time to do your research, it's probably best to buy a low-cost index fund (such as one that invests in all small stocks or all Asian stocks)..."