Understand the risks. Before you invest any capital into a stock, commodity, equity or other, make sure you understand that nothing in life or investments is one hundred percent certain. There are many things you can do to minimize the risk but understand nothing is certain.
Commodities. A great example of a commodity that has always done well long-term is gold. Gold is great because it will never be worth zero no matter what the market or dollar does. You always want to take some position in gold, silver or other commodities. You definitely want to buy gold when it dips or is extraordinary low.
Buy on "dips." A dip is when a stock goes lower than normal despite positive data. Sometimes, a stock will be on the upward trend for so long that no-one believes it will keep going up, so they sell the stock. Always remember, if the data looks good, then you should buy on dips.
Analyze investments. Before you invest in a commodity, equity or stock, it's important that you look at a company's year to date earnings report and leadership to determine future perspectives. You need to be alarmed when a top CEO gets fired. A good example is when Steve Jobs got fired and everyone sold Apple stock out of uncertainty.
Diversify. There are many ways to diversify when investing. For example; If you are investing in Gold, you can also buy another currency like the dollar, to diversify. You do this because one investment affects the other. Usually, when gold goes up, the dollar goes down or vice versa. This is another way to minimize your risks.
Investment trends. When the market is down, you should stay out of investing because you will likely lose money unless your investing in commodities. The stock markets success and your success are very much in line with trends and how good or bad the market is doing. If you are a day trader, you can invest in any market but when the markets doing bad, you want to stay away from long-term investing.
Earnings reports and Conference calls. When you invest into a stock, it's important to pay close attention to earnings and conference calls because they both give bits of data that can be analyzed.