Chasing Performance Is a Fool's Game

One way to gauge the credibility of a prospective manager is to simply judge how honest they are being with you. Are they promising get-rich-quick strategies? Are they less than forthcoming about their fees? Are they unable to communicate a clear investment philosophy with you that makes sense? Do they make excessive trades and follow short-term investment strategies? If so, you should probably find someone else.

The financial sphere is a place that is rife with chicanery and fraud for one simple reason: It's not well understood by most people.

Those who do understand it can easily take advantage of those who don't, and for that reason, the most important thing you can do as an investor is find someone who is knowledgeable that you can trust to serve your best interests and help you make the best decisions possible.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. Follow me on Twitter @NatWorden