6. You buy it based on an advertisement

Whether it’s a TV, radio, print or internet-based advertisement, be especially cautious. If a company is spending a lot of money to solicit you, you’re ultimately the one paying for it if you buy. Better investments typically go fast and don’t need to pay to advertise. Be especially wary of infomercials on TV, radio or internet podcasts. These are like talk shows claiming their goal is to educate you. Many financial retirement shows are actually paid infomercials. There may be a very brief disclosure that the company pitching its products paid for the spot; perhaps it’s very brief because they’re hoping you’ll miss it. As intended, these advertisements typically appeal to emotions.

7. It feels good

Though I tell people that investing should be dull if you’re doing it right, sometimes it should be painful. What it should never be is something that feels good. Ignoring any of the above warning signs and handing over your money feels good initially. Getting out of stocks in a bear market to stop future losses feels good as well, though logically it’s selling after a plunge — another investing mistake. Rebalancing your portfolio in a bear market means buying more stocks. Yes, doing so is excruciatingly painful, but logically, it’s buying stocks on sale.

How to protect yourself

First, when considering an investment, don’t plunk down your money immediately. I suspect that limited time offer will still be there in a few days. List things that can go wrong and what impact that would have on your family. Ask how the person and the company offering you the investment is making money and why it can be attractive to you as well.

Do an internet search on the product or company and see what others are saying. I often tell people to go to the Bogleheads online forum and use the search box to see what others think. These searches take only a few minutes, and it is time very well spent.

Go to someone you respect but who doesn’t always agree with you. That could be a spouse, friend or coworker, but not someone who could financially benefit if you buy something from them instead. You want someone who is as impartial as possible. Ask them what they think and whether they would make this move if they were in a similar circumstance as you.

Investing is simple, but never easy. Though there are occasional exceptions, if something looks too good to be true, it probably is.

Allan Roth is a practicing financial planner who has taught finance and behavioral finance at three universities and has written for national publications including The Wall Street Journal. Despite his many credentials (CFP, CPA, MBA), he remains confident that he can still keep investing simple.