#2: If You Don’t Get It, Don’t Do It
This is especially important advice for investors. If you don’t really understand what a company does—not to mention its financial standing and growth prospects—don’t buy the company’s stock. If you’re confused about the oil and gas industry’s future, steer clear of ETFs that have anything to do with the oil and gas industry. The same goes for a 401(k) fund: If you don’t know what the fine print means, wait until pulling the trigger.
Ask around. Do research online. If you’re using your money, you better be able to explain why you’re doing it.