5 smart investing tips to help you make better decisions with your money

There is so much information on the internet these days about investing for both beginners and experts that it can be difficult to sort through it all.

No matter what kind of markets and industries you’re interested in, or your level of experience, here are some smart investing tips anyone can follow:

1. Only invest in things you understand. Don’t put your money where your broker (if you have one) tells you to, without first knowing WHY you should put your money there. For example, we all know that technology is the future, but that does not mean that everything related to technology is a good investment.

2. Don’t assume that investing in multiple mutual funds will automatically “diversify” your portfolio. Always look below the surface of each bottom to see what is there. It is not uncommon for many mutual funds to own many of the same stocks.

3. If you want to put your money in a bank to earn interest, whether through certificates of deposit, money market accounts, or savings accounts, choose an online bank that has many positive reviews. Online banks can offer better returns than traditional banks.

More smart investing tips

4. One of the most important “smart investing tips” is to NEVER let your emotions get in the way. The stock industry has no place for emotions. No matter how great you feel about a particular opportunity, it might not actually be the best. Always take a little time to do your research first. It’s the same when it comes to selling stocks. Don’t think that just because you’re having a good day is a good time to sell. Always stay calm, never allow yourself to panic. Try to be as objective as possible when looking at the big picture.

5. Everyone has a “risk tolerance level” and it’s important that you learn yours as soon as possible, if you haven’t already. Even if all indicators point to a great investment, don’t invest more money than you can afford to lose. What if the unexpected happens and you end up losing money anyway? Will you be able to handle the loss?

You can get many, many more smart investing tips from some of the best Motley Fool experts. It is the best place to learn about all aspects of investing. Regardless of your level of knowledge and experience, Motley Fool offers everything you need to conduct investigations.