If you have been looking to make money in market than you can afford not reading these rules at your peril.
Rule 1: Bulls, Bears Make Money, Pigs Get Slaughtered
It's essential for all traders to know when to take some off the table and this where our best intraday advice comes into picture.
Rule 2: It's OK to Pay the Taxes
Stop fearing the tax man and start fearing the loss man because gains can be fleeting.
Rule 3: Don't Buy All at Once
To maximize your profits, stage your buys, work your orders and try to get the best price over time.
Rule 4: Buy Damaged Stocks, Not Damaged Companies
There are no refunds on the Street, so do your research and focus your trades on damaged stocks rather than companies.
Rule 5: Diversify to Control Risk
If you control the downside and diversify your holdings, the upside will take care of itself and this is where our stock investment tips comes into picture.
Rule 6: Do Your Stock Homework
Before you buy any stock, it's important to research all aspects of the company.
Rule 7: No One Made a Dime by Panicking
There will always be a better time to leave the table, so it is best to avoid the fleeing masses.
Rule 8: Buy Best-of-Breed Companies
Investing in the more expensive stock is invariably worth it because you get piece of mind.
Rule 9: Defend Some Stocks, Not All
When trading gets tough, pick your favorite stocks and defend only those.
Rule 10: Bad Buys Won't Become Takeovers
Bad companies never get bids, so it's the good fundamentals you need to focus on.
Rule 11: Don't Own Too Many Names
It can be constraining, but it's better to have a few positions you know well and like.
Rule 12: Cash Is for Winners
If you don't like the market or have anything compelling to buy, it's never wrong to go with cash.
Rule 13: No Woulda, Shoulda, Couldas
This damaging emotion is destructive to the positive mindset needed to make investment decisions.
Rule 14: Expect, Don't Fear Corrections
It is not always clear when a correction will strike, so expect and be prepared for one at all times.
Rule 15: Don't Forget Bonds
It's important to watch more than stocks, and bonds are stocks' direct competition.
Rule 16: Never Subsidize Losers With Winners
Any trader stuck in this position would do well to sell sinking stocks and wait a day.
Rule 17: Check Hope at the Door
Hope is emotion, pure and simple, and trading is not a game of emotion.
Rule 18: Be Flexible
Recognize and be open to the unexpected shifts in the market because business, by nature, is dynamic, not static.
Rule 19: When the Chiefs Retreat, So Should You
High-level executives don't quit a company for personal reasons, so that is a sign something is wrong.
Rule 20: Giving Up on Value Is a Sin
If you don't have patience, think about letting someone who does run your money.
Rule 21: Be a TV Critic
Accept that what you hear on television is probably right, but no more than that.
Rule 22: Wait 30 Days After Preannouncements
Preannouncements signal ongoing weakness, wait 30 days to see if anything has gotten better before you pull the trigger to buy.
Rule 23: Beware of Wall Street Hype
Never underestimate the promotion machine because
analysts get behind stocks and can keep them propelled in an up
direction well beyond reason.
Rule 24: Explain Your Picks
Buying stocks is a solitary event, too solitary in fact, so always make sure you can articulate your reasoning to someone else.
Rule 25: There's Always a Bull Market
It's OK if you have to work hard to find it, just don't
default to what's in bear mode because you are time-constrained or
intellectually lazy.
