[quote=young]1. Do not pay ridiculously high prices for stocks because overvalued companies always fall back to earth!
2. Pay close attention to charts when making decisions - a picture can be worth more than a thousand words!
3. Do not get caught up in the latest stock market fad. Every fad ends, and they ALL end the same way…badly!
4. Do not follow the crowd - when it comes to investment, inevitably the crowd is ALWAYS wrong.
5. Be cautious when investing borrowed money. Borrowings must be repaid in full whereas investments can fluctuate in value.
6. Carefully consider a company’s downside risk before investing. Preservation of capital is just as important as trying to make a fat profit.
7. Be patient when investing. Waiting for the right time to invest and exercising patience when investing is critical in the stock market.
8. Be disciplined and cut losses when necessary. Hoping the stock market will bounce back often leads to ruin.
9. Buy straw hats in winter - what the stock market shuns today is often embraced tomorrow!
10. Be honest with yourself. Admitting investment mistakes is imperative in share markets.
Happy Investing
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will keep in mind. But can you also tell how to know if stock is good or bad ???? so far i have been investing emotionally (listening to my heart) and i m sure if go by my heart in this market one day i will be looser.....
I want to be a millionaire.