a couple of tips on investing

Investing 101 - be prepared to walk away​
Our inbuilt biases make it difficult for investors to walk away from investment opportunities they have worked on or sell investments when they go wrong.
If an investor has spent considerable time (or money) researching a potential opportunity it can become difficult to walk away even if the investment doesn't quite stack up. The investor must be prepared to set the opportunity aside if the due-diligence does not support an investment case. In addition, people's natural aversion to losses can lead to poor and irrational investment decisions whereby investors refuse to sell loss making investments in the hope of making their money back at some later point in time.
We believe that astute investors pay little or no attention to the purchase price of an existing investment in deciding the rational course of action regarding whether or not to hold, sell or buy more. The rational investor will estimate the likely return on the investment on a forward-looking basis and compare that return to other attractive investment opportunities and decide on the course of action from there.
 
Diversification
Diversification is one of the golden rules in investing. We all know the phrase "Don't put all your eggs in one basket". Unfortunately, time and again people do not apply this to their investments. For example, during the GFC when New Zealand finance companies were collapsing, thousands of New Zealanders lost much or even all of their savings. Many thought their hard earned savings were diversified by having invested in a number of different finance companies. Unfortunately, this is not diversification, as all their investments were in one highly-leveraged sector of the same economy.

Please note the above is not specific investment advice, its general information only.