Try to look at fees rather than Performance

You should remember that it’s not what you make, it’s what you keep. You should evaluate the cost to generate an investment return when evaluating an investment. If you are using an investment manager compare the performance of the investment net of fees. These types of investments tend to have higher management fees and are often non-liquid.

Observe the cash flow to find the winners

Increased cash flow into a company is a great sign that the company is fundamentally strong. With increased cash flow that company has the ability to pay increased dividends and expand without taking on a lot of debt.

Go for the right kind of investments in the appropriate places

You should not buy an investment because everyone else is. The best investment policy is found in a balanced group and sketch investment objectives. If you are young and starting out your career, you should be heavily weighted into stocks and making investments with greater potential returns. But at the retirement a person should adopt an investment policy which focuses on conventional cash flow and protection of principal.

Make a future plan at least for 5 or 10 years ahead

Even the best professional investment advisors cannot predict what is going to be the best performer for the next year. The best investment policy is reached by taking a long term perspective in mind. When you invest, invest for the long term. Be patience and allow your portfolio to experience volatility. If you are worrying about your investments, then you have too much invested. Only invest what you are affording to lose.

Don't be afraid to hold cash

You should set aside some cash outside of the electronic banking system. If you were to experience a disaster your credit cards may no longer work, but your cash will. Hold enough cash to manage your affairs for at least 4 days (or 72 hours).

Follow the outstanding shares

When evaluating a company be sure to check who is currently holding the stock. How much institutional shares are invested. Institutional share give more stability to the stock unless bad news is announced. If the stock is quickly dumped by the institution, this will probably result in a large drop on the market. Look for companies that have less than 50% of the outstanding stock in institutions. This may bring a greater up side if you are holding stock and the institutions are looking to acquire large blocks. Also, companies with stock buyback programs are a good sign the companies stock is undervalued.

Don't rely on your instincts; they're probably wrong

Most people learn this lesson the hard way. If everyone is dumping a stock, that doesn’t mean that you should also be buying. Do no try to time the market in a stock. Remember the saying: "Lows hit new lows and highs hit new highs". The best investment policy is one that adopts a slow steady pace.