Free decision tool
Six clear checks. Understand what you own, what it costs, what could go wrong and which facts you can trust.
Six questions. Your own words.
Read each question, open an example if helpful, then mark the ideas you can explain.
Ownership
Explain what you own and how it could earn a return. A share is ownership in a business; an ETF holds a collection of investments.
Buying a company’s shares makes you a part-owner. Buying its product makes you a customer. Those are different relationships.
Price & costs
Include the spread, fees, borrowing costs and possible taxes. A low share price alone does not mean good value.
Ten shares at $20 and one share at $200 both cost $200 before costs. The lower share price alone does not make a company cheaper.
Downside
Think in dollars and check overlap with your other holdings. Some investments can lose more than the amount initially paid.
A small percentage can become a meaningful dollar loss. Try a hypothetical drop on a $1,000 stock position, without borrowing.
$1,000 invested$800 remaining$200 loss · before fees and taxes
Illustration only. A stock can lose its entire value; borrowing or other products can create additional losses.Timeframe
Protect your ability to meet bills and emergency needs. Needing the money soon can force a sale during a downturn.
Money needed for a bill next month has a different job from money set aside for a distant goal. More time does not guarantee recovery.
Your reasoning
Explain your reason in one sentence. Identify facts that would challenge it, beyond excitement or fear of missing out.
“Everyone is buying” is a feeling, not a business case. Guaranteed-return claims or pressure to act immediately are reasons to pause and verify.
Source check
Verify claims using original company reports and official records. Check dates, context and who benefits from the claim.
A social-media post says profits doubled. Read the original report: which period, which profit measure, and what changed? A screenshot alone is not verification.
You do not have to act today. A question you cannot answer is a good place to pause, research and reconsider.
Educational checklist only. Completing it does not mean an investment is appropriate. Personal circumstances and professional advice may be necessary.
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