The 1 Question You Must Ask Yourself Before Buying a Stock
Investing in stocks can be a risky prospect. Stock values can fluctuate a lot, and that means that on a day-to-day or week-to-week basis, you could end up seeing your fair share of on-screen losses in your portfolio.
But investing in stocks also has a lot of upside -- namely, that stocks tend to generate high returns that could make you very wealthy. That assumes, of course, that you're willing to take a buy-and-hold approach to investing -- buy stocks and hang on to them for many years so they can gain value. But all told, loading up on stocks is a great way to build a lot of wealth for retirement, and it could be your ticket to meeting other major goals as well.
But if you're going to buy stocks, it's important that you do so strategically. And so the next time you're tempted to add shares of a given stock to your IRA or brokerage account, be sure to ask yourself this important question.
Source Fool.com
