- Don’t buy penny stocks.
- Do not put all your money in one stock.
- Buy stocks in companies you believe in and understand what they do.
- Don’t panic and sell when the market goes down. The worse the market looks the better the opportunities to get bargains (usually).
- If you don’t feel comfortable buying individual stocks go with ETF’s with low expenses that track something like the S & P 500 but do diversify with time.
- Find a mentor that has market experience.
- Research a companies income statement, balance sheet, and cash flow.
- Last but far from least. Don’t try to get rich quick. Getting very wealthy slowly is a great way to go.