Consider Your Own Patience and Ability to Hold

An important factor when deciding on purchasing a stock is your ability to keep that money invested.

Oftentimes, a stock may reach its full growth potential over a long period of time. This may be next month, the time after the next earnings call, or even next year.

Regardless, you need to be ready for this eventuality. This means you should only be ready to invest if you’re ready to be patient and don’t need the money immediately. The shorter time you can do without that money, the less risk you should take and the lower return you should expect.