Map Your Course

It's important when investing in small-caps to establish guidelines for purchasing and selling your positions. It's also extremely important to be aware of some of the common dangers that you'll face. First, don't become too attached or emotional with any position. Second, don't try to time the market by buying at the lows and selling at the highs-you'll never succeed at this in the long term. Third, do your homework and don't depend on others to determine what's in your portfolio. If a position is keeping you up at night, is it worth it? Finally, don't worry about volatility. Ignore the market fluctuations and ask yourself if the reason you bought the stock in the first place still holds true. If it does, those fluctuations may present great opportunities to accumulate more shares at a lower cost.