1. Evaluate fundamentals/financials: Unfortunately, as with many things these days, many people rely too heavily on the analysis/opinions of others, rather than thoroughly examining a specific corporation's fundamentals and what the audited financial statements mean and represent. Read books, take courses, and become familiar with key terminology. Understand and be able to read budgets and financial statements. Why do analysts make certain predictions or conduct analyses? Try to separate emotion from logic right from the start!
2. What should you do if the price of a stock rises? A stock's price can go up, stay steady, or go down. What should one do if the price of a particular stock rises after purchasing it? Would you buy it at the higher price if you didn't already own it? If the answer is yes, then buy more shares! If not, should you sell your possessions? If you're not sure, it's a good idea to hold or sell some of these to ensure you don't lose money if/when prices fall! Maintain objectivity!
3. The stock price remains stable! : What strategy is logical and prudent if/when the price remains roughly the same as when you first invested? Don't fall into the trap of becoming emotionally attached to a specific stock; rather, after a period of time, consider whether, if you were investing again, you would put your hard - earned money on this corporation! If yes, hold and consider purchasing more shares; if no, sell your position!
4. Stock price decline: What should you do if the stock price declines? Some panic and immediately either sell or consider selling! While that may be prudent, in some cases, the prudent approach is to ask yourself whether you still believe in the particular company, and, if so, whether you should invest in more shares!
5. Short, intermediate, or long - term: Consider whether you are primarily interested in short-term/immediate results, intermediate results, and/or long-term results. Know and remember why you bought? Was your goal to increase your income, or both? Are your objectives, goals, and expectations - to some extent - realistic?
Before investing, fully comprehend the primary considerations and your personal comfort zone! Always keep these in mind, as well as the potential risk/reward ratio!"""