| Although I wouldn't call myself a professional | | | | company. |
| stock market investor, I do spend a lot of time | | | | Don't pay too much for a stock Don't pay too |
| following the market and reading about the ups | | | | much for a stock If a stock is getting a lot media |
| and downs of companies. I've never been | | | | attention and everyone from your local butcher |
| interested in mutual funds or index funds very | | | | to your taxi driver has been buying into it, there's |
| much as I would much rather invest in individual | | | | a good chance that the price of the stock is |
| companies. My work allows me plenty of time to | | | | inflated. |
| indulge in my stock market obsession though, so I | | | | Compare the company data with similar stocks in |
| understand that not everyone can put in the | | | | the same industry. If they don't compare, move |
| hours of research required to invest in individual | | | | with caution. It may be that the company is a |
| stocks. | | | | quality stock in a strong, long term uptrend or it |
| Over the years I have made enough mistakes | | | | could be that a bunch of sheep are simply |
| and have had enough successes to learn enough | | | | reacting to media hype. The challenge is to work |
| about investing in stocks to have developed my | | | | out which stock is the quality company that |
| own set of rules. These are general investing tips | | | | demands a premium price and which is the stock |
| that can easily be adapted to most styles of | | | | that will halve in value. |
| investors. | | | | Sell a losing stock Admit to your mistakes and |
| HOT tips Don't pay any attention to HOT tips As | | | | don't be afraid to sell a losing stock No one likes |
| tempting as the hot stock market tips may | | | | to admit they are wrong, but even the best |
| sound, don't risk your hard earned dollars on | | | | investors make mistakes. Hoping for your stock |
| them. Impulsive buys are no different to gambling, | | | | to turn around while it keeps losing value month |
| so unless you can afford to lose your money, | | | | after month, year after year is a no win situation. |
| buying just because a friend says they have | | | | Some companies will always underperform. Cut |
| made a lot of money from a company is no | | | | your losses and put it into something that has |
| reason to race out and buy it. If the hot stock tip | | | | some hope of making you money. |
| is really worth adding to your portfolio, it will still | | | | Professional Advisor Get Help from a Professional |
| be worth adding after a couple weeks of | | | | Advisor Even if you have a lot of spare time to |
| research. | | | | research the market and investing in stocks, it is |
| Learn about stocks Learn as much as you can | | | | advisable to see a professional before making any |
| about the stock before investing in it Each stock | | | | major financial decisions. The tax implications and |
| is actually a business, not just a stock ticker | | | | financial obligations of individual investors may |
| symbol that goes up or down each day. You | | | | mean that it wiser to pay off debts or invest in |
| wouldn't buy a business before doing a lot of | | | | other assets. If you are sure that stock market |
| research into what the company actually sells, | | | | investing is the right thing for you, it is still good to |
| what services they provide, what the earnings | | | | seek professional advice. |
| have been, what earnings are expected to be, | | | | With the abundance in financial data online now |
| and a whole lot more about the business. The | | | | and online brokers being so easy and affordable |
| famous stock market investor from Omaha, | | | | to use there has been a massive increase in |
| Warren Buffett always refused to invest in | | | | individual investors entering the markets for the |
| businesses that he never understood. He avoided | | | | first time. Don't ever feel that you have to buy |
| technology stocks as he knew very little about | | | | stocks in haste though. |
| the businesses behind the stocks, which allowed | | | | Impatience will burn more people than it will |
| him to miss both the boom and bust of the tech | | | | reward. Know the stock, the company, and the |
| bubble. | | | | industry it is in before even thinking about logging |
| Learning about the industry the stock is in can | | | | into your internet broker account! |
| also be as important as learning about the | | | | |