Grillo Financial Services

Diversify: The expression, "don't put all your eggs in one basket" is meaningful when it comes to investing. Don't put all your money in one stock. Also, buy fixed income securities (i.e. bonds) and stocks. Don't pick only one type of investment. Diversification does not ensure a profit or guarantee against a loss.

Do Your Homework: Obtain and analyze as much information as possible before making your investment decisions. This will alert you of any problems a company may have, or what to expect from your investment.

Set Goals & Limits: Determine the price (high target price or low stop-loss price) at which you're willing to sell. Analyze interest rates to decide what return you want.

Don't Gamble With Money You Can't Afford To Lose: The less you can afford a loss, the more conservative you should be in your choice of investments.

Don't Be Greedy: Don't expect your broker to recommend stocks that will double in value within a few months. If you do have a stock that goes up considerably -- i.e. 50% or more -- sell.

Invest For The Long-Term: Company stock prices will fluctuate, sometimes unfavorably, in the short-term. Invest for the long-term, but keep your current financial needs in mind. You never know when you might need some of that money.

Avoid Acting On Impulse: An impulse buy, whether at the mall or on the stock market, is still an impulse buy. Stick to your plan. Don't buy a stock on a hot rumor; you'll get burned 90% of the time.

Go For Value: Undervalued stocks will help create the most growth in your portfolio. Look for bonds of companies that are out of favor too. They should be selling at a deep discount. The investor should note that funds that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility and increased risk of default.

Tax Planning Is Important: Consider income-splitting techniques. (Representatives of Tower Square Securities do not provide tax advice. Please consult your tax advisor for such guidance)

Get Professional Help: If you're starting out, hire the best professional help you can afford. Professional advice will likely pay for itself within a short period of time. Once you become used to the market, do the research yourself. Later on in the game, switch to an online broker.