What are some of the rules that you always follow when making a new investment? What do you ask yourself before investing?
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What percent of the investment will be eaten up by commissions and fees? |
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Never invest in anything that you don't fully understand.You might discover some risks that you weren't aware of. I ask myself if I really understand how the particular investment works especially if this is the first time I've invested in it. |
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Never buy a stock because it has a low price.A factor in buying the stock could be because it has a low price relative to is earnings but you shouldn't be buying it just because it has a low price. |
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If it sounds too good to be true, it probably isThere are probably risks to the investment that you do not yet understand. |
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Don't Buy All at OnceTo maximize your profits, stage your buys over time. Use dollar-cost averaging. |
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