Second, do your due diligence on the business you’re buying stock in.
“It’s one thing to just like a stock or because you use it and you believe in it,” Boneparth says. “It’s another thing to actually take a minute and understand the business that you’re investing in.”
Before parting with your money, look up the business’ annual reports and research analysts’ reports. You can also listen to the company’s earnings calls. It’s important to educate yourself on things like how the business makes its money, how much cash it has on hand, what its margins are and who its competitors in the space are.