Investing is really isn’t that difficult, but there are some things that should be done and some things that should be avoided. Here is a list of investing Do’s and Don’ts. I’ll expand on this list with new posts.
- Put money away regularly.
- Buy in increments, especially when starting with a large amount of money.
- Learn as much as you can about a company.
- Invest as if you were becoming a partner in the business.
- Evaluate your stocks based on the business, not the share price.
- Stay in the market, even when it is sinking.
- Lean more heavily towards stocks when you are young.
- Diversify when you have money to protect.
- Buy significant enough amounts of the stocks you select to make a difference.
- Take a small portion of the return of your portfolio out periodically to supplement your income.
- Try to time the market.
- Sell when stocks are going down.
- Hold out for an extra few pennies when you are ready to sell.
- Sell or buy a stock just because it has gone down in price.
- Buy or sell a stock because it has gone up in price.
- Listen to the talking heads or get tips from friends.
- Check the prices of your stocks too often.
- Take principle out of your portfolio for expenses if you can possibly help it.
Your investing questions are wanted. Please send to email@example.com leave in a comment.
Follow on Twitter to get news about new articles. @SmallIvy_SI
Disclaimer: This blog is not meant to give financial planning or tax advice. It gives general information on investment strategy, picking stocks, and generally managing money to build wealth. It is not a solicitation to buy or sell stocks or any security. Financial planning advice should be sought from a certified financial planner, which the author is not. Tax advice should be sought from a CPA. All investments involve risk and the reader as urged to consider risks carefully and seek the advice of experts if needed before investing.