The Top Questions to Ask Before Investing

October 2, 2019, By fierceinvestor,

Successful investing isn’t about having the “perfect” strategy.

It’s about the rule you abide by with each trade.

Many fail to use stop losses, or even protect gains with a simple trailing stop loss strategy. Others risk far too much.

As we all know, that kind of risk can be a disaster if everything goes the wrong way.

It’s why checklists are essential with trading.

  1. With your next trade are you aware of your risk tolerance level?
  2. What are your set stop losses?
  3. Do you know when to walk away from a trade?
  4. What are you expectations from the trade, your target prices?
  5. Are you trading on emotion? If so, rethink the trade.
  6. Are the bulls or bears currently in control of the stock in question?
  7. What kind of news is currently impacting my trade positively or negatively?
  8. How has the herd been reacting to a stock?

With each trade, ask yourself these key questions.

The more informed you are about the opportunity. Avoid such questions and you invest blindly. And as we all know that’s not a good idea at all.

Failure to plan can – and oftentimes will – lead to unnecessary loss.

Plan ahead and you’re ahead of the game.

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