New investors and amateur traders have entered the US stock market in droves. Technology has made it easier than ever for newbies to seek riches amid the rush of daily action. Like it or not, America’s Securities and Exchange Commission is eyeing new rules to control players and protect investors.

In truth, self-regulation is the best form of investor protection. A first step may be learning business basics — accounting, economics and valuation. More important is psychology, particularly behavioural finance’s insights into the cognitive tendencies of investors.