Often I hear of people telling me (or others) “You need to invest in this stock/ETF/Mutual Fund/something!” I like to do my due diligence of both research and observation over time. It should be a no-brainer that before you invest in something you should do your research first. However the bigger question you should be asking the person giving you this advice is OK, you’re telling me to buy this but when should I sell? Ultimately understanding what you are investing should be your exit strategy. If you don’t have that how can you reap your gains?

But there are other things you need to keep in mind:

• You’re never going to sell at the highest point. Be happy if you make some money!
• Know what you are buying - is this a set and forget until you retire or do you need to keep be more proactive?
• What type of an investment is this? How does it play into your overall financial portfolio. If you’re asking “what is my financial portfolio?” then you’ve got more rudimentary issues to work out beside just investing in a single company.
• Are you ok with losing money?
• Are you too emotional about money?