5. It is all about information and insight. If information is proprietary and you have insight into it, it’s especially valuable. These days, the internet makes information easier than ever to come by (but, as always, be discerning about what you read, too, and consider the source).
6. Be diversified with your knowledge base. When choosing an ETF, check the diversity of what’s in it. Is it heavily skewed toward two or three companies at the top, or is it equally spread out among a couple dozen?
7. Find your reasons. Why do you want to buy? What are your reasons? Always know why you’re taking a position and what your own opinions are. This can be especially helpful if you’re nervous about re-entering the market, even when all signs point to “go.”
8. Be passionate about investing, but not about the investment. Don’t let your emotions drive your investment decisions. Sticking to a strategy in which you enter and exit at specific signals will help you keep your emotions on the back-burner. Your ETFs don’t have feelings – neither should you (at least when you’re investing).
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