This stock market investment tips have been extracted from : Fosback, Norman G. Stock Market Logic.Chicago, IL: Dearborn Financial Publishing, Inc., 1992.I’d suggest you buy the book and read more.This stock market tips can be used in any stock market in the world.So lets begin.



1. As a new investor, be prepared to take some small losses.

2. Always cut your losses at 8% below your purchase price.

3. Persistence is key when learning to invest. Don’t get discouraged.

4.Learning to invest doesn’t happen overnight. It takes time and effort to become successful at it.
5. When getting started, it is important that you pick the right full service or discount brokerage. If you use a broker, make sure he or she has a good track record.

6. As a beginner, set up a cash account, not a margin account.

7. It only takes $500 to $1,000 to get started. Experience is a great teacher.

8. Avoid more volatile types of investments, such as futures, options, and foreign stocks.

9. Concentrate on a few, high-quality stocks. There’s no need to own twenty or more stocks.

10. Don’t get emotionally involved with your stocks. Follow a set of buying and selling rules, and don’t let your emotions change your mind

11. Don’t buy a stock under $15 a share. The best companies that are leaders in their fields simply do not come at $5 or $10 per share.

12. Learning from the best stock market winners can guide you to tomorrow’s leaders.

13. Always do a post-analysis of your stock market trades so that you can learn from your successes and mistakes.

14. A combination of fundamental and technical investment styles is essential to picking winning stocks.

15. Fundamental analysis looks at a company’s earnings, earnings growth, sales, profit margins, and return on equity among other things. It helps narrow down your choices so that you are only dealing with quality stocks.

16 Technical analysis involves learning to read a stock’s price and volume chart and timing your decisions properly.

17. To make big money, you have got to buy the very best companies at the right time.

18. Strong sales and earnings are amongst the most important characteristics of winning stocks.

19. Buying a stock as it is coming out of a price consolidation area or base is crucial to making large gains.

20. Always pick stocks from the leading industry groups or sectors. The majority of past market leaders were in the top industry groups and sectors.

21. Many big winning stocks come from sectors such as drugs and medical, computers, communications technology, software, specialty retail, and leisure and entertainment.

22. Volume is the actual number of shares traded by a stock (Find out how to read volume on stock charts).

23. Stocks never go up by accident. There must be large buying, typically from big investors such as mutual funds and pension funds.

24. In studying the greatest stock market winners over the past 45 years, bases formed just before the stock broke out into new high ground in price and then went on to make their biggest gains.

25. The most common pattern is a “cup with handle” names so because it resembles a coffee cup when viewed from the side.

26. The optimal buying point of any stock is the “pivot point”.

27. On the day a stock breaks out, volume should increase by 50% or more above its average.

30. A decrease in price on decreased volume indicates no significant selling.

I hope you Enjoyed . Happy Investing

Good research..