When a stock is going up. If you’re not getting a lot of dividends, then it might be better to buy more dividend-paying stocks and wait for the next dividend increase. But if the stock is going up too fast, you could lose your investment if it finally goes down from its highs. Think about other factors before investing in a high-flying stock that has been making big gains recently. You should always consider how much money you can afford to lose before investing in any company or market sector.
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What are some things I should look out for when buying stocks? Be careful with investments that have little upside potential or downside protections such as warrants or options contracts that give investors extra rights on their holdings—because they aren’t protected by full ownership interest in the company until specific performance goals are met (see Chapter 4). Don’t invest money from retirement funds into risky ventures because these will likely fall short of expectations and may leave you with nothing after all your hard work building those savings over time! Back away from companies where shares trade at very high prices relative to past earnings per share growth rates (or payouts) since this means there is no room for price appreciation, which means there isn’t much room for earnings growth either; see Chapter 5 regarding determining whether something is overvalued through discounted cash flow analysis (DCAF). Another tip: Avoid trading actively held positions within 60 days of buying them unless