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Here is the anser to this Frequently Asked Question.

What are some basic tips when investing?

1. Don't try to time the market by jumping in when you think it's going to go up, and out when you think it's going to go down. The odds for success are low, even for the experts. People tend to have the most confidence to buy at market highs, and the strongest tendency to sell at the lows. By the time they feel comfortable buying back in, the market is well on its way up again and they've missed much of the gains. 
2. Keep tax consequences in mind. For example, interest from bonds or GICs is fully taxable as income, while only one-half of capital gains on stocks are taxable. Dividends are also taxed less than interest, making preferred shares a good alternative. If you hold both interest bearing securities and stocks, you may want to consider holding a good part of your interest-bearing securities in your RRSP, where taxes are deferred.
3. Set up a regular contribution plan. If you find it hard to come up with your RRSP contribution at deadline time, make regular monthly contributions, automatically deducted from your bank account. This is known as "paying yourself first." Money that you never see is much harder to spend, and you get used to living without it. This avoids having to come up with a lump sum.
4. Start saving as early as possible for children's post-secondary education. Compound growth can make a huge difference over time. If you invested $10,000 at your child's birth and never added another cent, with an average 10% annual compounded return it would grow during 18 years to more than cover the estimated $70,000 cost of a four-year post-secondary degree.
5. Consider holding foreign content. Canada accounts for less than 4 per cent of world markets, and investors can benefit by shopping the world for opportunities. Many international markets have outperformed Canada over the years and the Canadian market has had a lot of gains recently largely in only 2 sectors; energy and financials.  A portfolio including a mix of Canadian and foreign investments actually lowers risk and has historically offered better returns.
6. Include your whole family in your investing and financial planning, taking into account such issues as the financial situation of your parents, any assistance you may want to give your children for various life events – including post-secondary education, weddings or home-buying – and estate planning concerns. Saving and wealth issues usually cross intergenerational lines, so don't plan in isolation. Talking about money can be awkward, but it can help everyone.
7. Set life goals for investing, know your objectives and risk tolerance. Before deciding if a particular type of investment is right for you, consider whether you will need the money in the short, medium or long term. Also consider whether you are looking for income, or for growth. Equity investments can fluctuate in the short-term, although they offer the best long-term returns.
8. Avoid overreacting to the recent short-term behavior of your investments. It usually results in selling last year's loser after it's had most of its losses, and buying this year's winner after it's had most of its run, or vice versa. Choose your investments wisely to begin with, and weather the ups and downs. Investors who sell during temporary periods of underperformance miss out on subsequent recoveries and long-term gains. (Short Term 0 -24 months; Medium Term 2 – 5 years; Long Term 5+)

Courtesy of AIM Trimark Investments

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