Use a checklist to guide your investments
Here's a great idea for new investors:
For every investment, create a checklist that will guide you. This list should include:
- Your requirements
- Your risk
- Your desired profits
As you move through the process of completing the investment, also complete the checklist to make sure you stay on track. If the investment isn't meeting your requirements, step back and figure out what's going on. If the risk level is exceeding what you're comfortable with, stop and understand why and then decide what action you need to take to get it back in line. And certainly, if the desired profits aren't there, what's the point of the investment?
Force yourself to do this exercise with every investment. Eventually it will become intuitive, but until you get to that point, write it down.