1. Examine the fundamentals and financials: Unfortunately, as with many other things these days, many people rely too heavily on the analysis and opinions of others rather than carefully evaluating the fundamentals of a specific corporation and what the audited financial statements indicate and represent. Read books, attend classes, and comprehend important terminology. Understand how to read and interpret financial figures and budgets. Why do analysts get to certain conclusions or make certain predictions? Try to keep logic and emotion apart right away!
2. What should one do when a stock's price increases? A stock's price may increase, decrease, or remain stable. What should one do if a particular stock's price increases after purchase? Do you want to buy it at the higher price if you didn't already have it? Purchase more shares if the answer is yes! If not, sell your possessions. If you're unsure, it makes reasonable to hold back some of these or sell them off to make sure you won't lose money if/when prices fall. Be impartial!
3. The price of the stock doesn't change! What course of action makes sense and is a good move if/when the price stays relatively the same as when you first invested? Instead of falling into the trap of becoming emotionally tied to a specific stock, wait a while and then think about whether you would still be investing in this company if you were starting over. If so, stay onto your position and think about adding to it; otherwise, reduce your holdings.
4. Stock price declines: What should you do if the stock price declines? Some people instantly sell off their assets out of panic. While in certain cases it may be prudent to do that, the best course of action is to reevaluate your belief in the specific firm and, if so, consider increasing your share investment.
5. Consider whether you are primarily focused on the short-term/immediate results, a more intermediate one, or the longer-term results. Knowing and keeping in mind why you bought. Was your goal income, growth, or a combination of these? Are some of your aims, goals, and aspirations realistic?
Understand the main factors to be taken into account before investing, as well as your own comfort level. Always take into account both of these and the prospective risk/reward scenario!"""