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[li]As a new investor, be prepared to take some small losses.[/li][li]Always cut your losses at 8% below your purchase price.[/li][li]Persistence is key when learning to invest. Don’t get discouraged.[/li][li]Learning to invest doesn’t happen overnight. It takes time and effort to become successful at it.[/li][li]When getting started, it is important that you pick the right full service or discount brokerage.[/li][li]If you use a broker, make sure he or she has a good track record.[/li][li]As a beginner, set up a cash account, not a margin account.[/li][li]It only takes Rs. 2000 to Rs.40000 to get started. Experience is a great teacher.[/li][li]Avoid more volatile types of investments, such as futures, options, and foreign stocks.[/li][li]Concentrate on a few, high-quality stocks. There’s no need to own twenty or more stocks.[/li][li]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 (read my post on 50 Ways You[/li][li]Know You Are An Emotional Investor to see if you are an emotional investor)[/li][li]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.[/li][li]Learning from the best stock market winners can guide you to tomorrow’s leaders.[/li][li]Always do a post-analysis of your stock market trades so that you can learn from your successes and mistakes.[/li][li]A combination of fundamental and technical investment styles is essential to picking winning stocks.[/li][li]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.[/li][li]Technical analysis involves learning to read a stock’s price and volume chart and timing your decisions properly.[/li][li]To make big money, you have got to buy the very best companies at the right time.[/li][li]Strong sales and earnings are amongst the most important characteristics of winning stocks.[/li][li]Buying a stock as it is coming out of a price consolidation area or base is crucial to making large gains.[/li][li]Always pick stocks from the leading industry groups or sectors. The majority of past market leaders were in the top industry groups and sectors.[/li][/ol]
When you invest money in company stock, commodities, futures and other venues, the hope is that you will enjoy sensible return on your cash, perhaps even high returns. However, investment fees can creep in and eat away at the gains. Pay attention, and you can learn the way to save money on investing charges. A cash advance can help you when you need fast cash and do not want to take it out of your investments.
Happy to see a discussion on stocks here.
Don’t agree with point9 though.