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Market volatility refers to the rate at which the price of securities increases or decreases for a given set of returns. Volatility is measured by the standard deviation between returns from that same security or market index.

While volatility can be unsettling for investors, it's a normal part of market cycles. Here are key points to remember:

• Volatility creates buying opportunities for long-term investors
• Diversification helps mitigate the impact of volatility
• Historical data shows markets tend to recover from downturns
• Emotional decisions during volatile periods often lead to poor outcomes

Successful investors develop strategies to navigate volatility rather than react impulsively to market movements.

Starting your investment journey can feel overwhelming, but these five tips can help set you on the right path:

1. Start with clear goals - Define what you're investing for (retirement, down payment, etc.) and your time horizon.
2. Educate yourself continuously - The investment landscape changes, so commit to ongoing learning.
3. Diversify your portfolio - Don't put all your eggs in one basket. Spread investments across different asset classes.
4. Think long-term - Avoid making decisions based on short-term market fluctuations.
5. Start small and be consistent - Regular contributions, even small ones, can grow significantly over time through compounding.

Remember that every expert investor was once a beginner. The key is to start, stay disciplined, and continuously learn.

Compound interest is often called the "eighth wonder of the world" for its ability to grow wealth exponentially over time. It works by earning interest on both your initial principal and the accumulated interest from previous periods.

Here's why compound interest is so powerful:

• Time is your greatest ally - The longer your money compounds, the more significant the growth.
• Small amounts become substantial - Regular investments, even modest ones, can grow into significant sums over decades.
• It works automatically - Once invested, compound interest works for you without additional effort.

For example, investing $200 per month with an average annual return of 7% would grow to over $100,000 in 20 years, with more than half of that amount coming from compounded returns.

The key to maximizing compound interest is to start early and remain consistent with your investments.