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