Seven Habits of Highly Profitable Investor 3: First Thing First

We must recognize the importance of doing the "First Thing First" so that we can make fewer mistakes in our investment. I have come out with a simple three steps guide on what are the things to do first. Skipping any step might increase your chance of losing money.

Step 1) Always do a fundamental analysis (FA) first before investing in any stock.

Step 2) If the fundamental of the stock is good, proceed to plan for a strategy on when to buy it. In my opinion, averaging is a good strategy that I am adopting. Always make sure you have enough money for your strategy.

Step 3) Check whether the current price of the stock is low or high. Don’t be too anxious to buy any stock without doing some simple technical analysis (TA). Though I don’t believe that TA can tell us whether the stock will go up or down, in my opinion, it can be a good guide for determining the best points to buy or sell.

Please note that if you don't know FA and TA, then your first thing to do now is to learn them from books or internet.