13 Warnings Before You Invest Your First Dollar

10. Don't let fear or greed into your investing mindset. Objectivity is a key to success. Keep emotions out of your decision-making (see "10 Ways to Build Trading Discipline").

11. Don't let trading excitement override common sense. Four winners in a row should not make you "double up" or bet it all on the fifth trade. Control this temptation of greed. When you enjoy the "rush" of a good number of wins in a row, you are probably outperforming the average stock investor. Keep Murphy's Law in mind when you are experiencing these "hot streaks."

12. Don't overly resist taking losses. Loss management is another key part of successful investing. Cut losses short and move on to other opportunities. While you can wait many years for a losing stock position to turn around or even become profitable, that is many years that the money in that position is held hostage. Could that money be better invested in some other position? All investors face losses in investing. It can be a very good strategy to take the loss and move on to a new opportunity (see "Take Responsibility for Your Stock Losses").

13. Don't rely on "luck" or "hope." "I think this is my lucky day" is not a good foundation on which to risk money in new stock investments. Study the market, and the choices you're considering. If most of your rationale is based on luck or hope, you are probably not going to enjoy long-term success with stock investing.

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