Here is the twelve important steps that any investor must know before making any investments. Practicing these steps will protect you from any occurring mistakes or errors, that cost money, while investing.
1. Obtain written documents that explaining the investment2. Read carefully and understand such documents3. Verify the legitimacy of the investment4. Find out the costs and benefits associated with the investment5. Assess the risk-return profile of the investment6. Know the liquidity and safety aspects of the investment7. Ascertain if it is appropriate for your specific goals8. Compare these details with other investment opportunities available9. Examine if it fits in with other investments you are considering or you have already made10. Deal only through an authorized intermediary11. Seek all clarifications about the intermediary and the investment12. Explore the options available to you if something were to go wrong,and then, if satisfied, make the investment.The above points known as the 12 golden rules for investor. So, be a wise investor than a coward.