I know you are busy, and I know its hard! But before investing in a stock, try writing a report similar to our ‘Stock of the Month’ report. For every stock you own, you should be able to explain, in detail, why you own it. And just saying “because I think its going to go up”, is not a good answer. By writing down your detailed reasons for buying, you have a historical document to review when it comes time to sell. Many investing strategies say you should sell when your reasons for buying are no longer valid. But, if you don’t document your reasons for buying, then you can’t know when to sell.
Teachers will tell you the best way to learn about something is to teach it. You will force yourself to learn the details about a company by writing about it (and letting a few others read it).
