At times you may feel compelled to check the headlines on CNBC or the Bloomberg channel.

You may notice, stock prices scrolling across the bottom of your screen, occasionally some even up, 10%, 15%, even 20% + that day!

Many of these stocks you recognize as household names, products and services you use often.

Your interest may get peaked and you will see supporting articles and posts online with catch phrases suggesting a particular sector or stock could go higher, much higher. Usually I see the these types of article in extra large fonts and bold letters.

I love a good opportunity just as much as the next investor

I urge to proceed with caution. The internet is full of compromising articles and stock recommendations. Authors publishing articles may or may not have an agenda.

If you scroll to the bottom of the article you will find the author disclosures. Details of background, company affiliations are outlined. Sometimes you may even find the author owns the stock he is writing so optimistically about.

All great information

Many of the disclosures are similarly structured. Legal entities involved are stated. The specific article is not intended to be viewed as investment advice. It is at this point, details on the authors position on any stocks mentioned are disclosed. All great information.

However, I can’t help but think what would be equally beneficial to investors to understand. When deciding to taking ownership in a company, by purchasing the common stock of a publicly traded company there are many considerations.

I decided to come up with my own disclosures because anything can happen

• The price of a stock you own can go lower, for no obvious reason having you questioning daily why you own it.

• The price of a stock you own can have wild swings up and down, giving you hope and happiness at times but as much despair and disgust more frequently.

• The price of a stock you own can go lower on a negative or positive earnings reports, despite your own Kool-aid branded version of what happened.

• The price of a stock you own can go lower because there are more sellers than buyers. @%*!# ? (my personal favorite)

• The price of a stock you own can go lower based on an analyst upgrade or downgrade, it just can.

• The price of a stock you own can go lower from macroeconomic factors that effect the entire market including your stock, sometimes only your stock.

• The price of a stock you own can go lower from microeconomic factors that could hurt the sector your stock is in, adversely impacting your stock.

• The price of a stock you own can go lower based on a managerial change in the company, those CEO’s come and go.

• The price of a stock you own can go lower as a result of a company misleadings and allegations, or even misleading allegations.

• Similarly, the price of a stock you own can go much lower once it’s reopened after being halted, real fun.

• The share price can go higher, typically after you sell it.

Manage and set expectations

I have been working with investors since 2002, and I can tell you owning a stock that is down 20% after a positive earnings report and 3 analysts upgrades all while the DJIA was up 300 points that day, can be challenging.

I hear the term “manage expectations” used and that is smart, but don’t forget to ‘set expectations’. If you can’t or do not want to handle volatility in individual stocks, fine, stay away, that is exactly the point. There are many prudent ways to potentially build wealth through other vehicles such as ETF’s and mutual funds.

Actually for newer or beginning investors I would suggest to start with low cost index funds.

Overall, in my experience most investors tend to have a fair amount of resiliency. I just think if investors were prepped more for what could happen before they actually put their hard earned cash behind it, it may provide for a better overall experience, and more likelihood of hanging on for the long term.

We all know what can potentially happen on the upside, it’s stated everywhere in large fonts and bold letters.