1. LEARN TO CONTROL FEAR AND GREED.
2. DON'T BUY STOCKS ON IMPULSE. ALWAYS BUY ON FEAR AND SELL ON GREED.
3. KNOW YOUR OBJECTIVES, UPSIDE AND DOWNSIDE, BEFORE YOU BUY.
4. DO YOUR 'HOMEWORK' BEFORE YOU PURCHASE, NOT AFTER.
5. KNOW WHAT YOUR 'HOMEWORK' SHOULD CONSIST OF.
6. ASK QUESTIONS, IF BROKER RECOMMENDS.
7. DIGEST INFORMATION.
8. SELL STOCK INTO RALLY lst DAY OF MERGER, TAKOVER, ANNOUNCEMENT
9. DO NOT REACT TO MARKET RUMORS; VERIFY, RESEARCH RUMORS.
10. REMEMBER MARKETS SELL/BUY ON RUMORS; DO THE OPPOSITE ON FACT.
11. LEARN TO SELL.
12. USE STOPS. ALWAYS USE STOPS.
13. MOVE STOPS UP AS PROFITS INCREASE.
14. IF YOU DON'T DO YOUR 'HOMEWORK'; HOW CAN YOU COMPLAIN.
15. MONEY CAN WORKS 24 HOURS A DAY, 7 DAYS A WEEK, AND YOU CAN'T.
16. SINCE MONEY ' CAN ' WORK HARDER, APPLY EFFORT.
17. LEARN TO INVEST, TRADE SMARTER.
18. MARRY RELATIONSHIPS, NOT STOCKS.
19. PROFITS ARE FICTION; CASH IS FACT.
20. YOUR 1st LOSE IS YOUR CHEAPEST. STOCKS THAT LOOSE 50% OF THEIR VALUE HAVE TO RISE 100% TO BREAK EVEN.
21. COMPLACENCY & HOPE = BEARISHNESS WALL OF WORRY & FEAR = BULLISHNESS
BUY GOOD STOCKS WHEN THEY ARE OUT OF FAVOR & NO ONE WANTS. IF EVERYONE LIKES THE STOCK YOU OWN, & ANALYSTS ARE ALL RECOMMENDING THE STOCK, USUALLY TOPPING, SELL.
22. 98% OF ANALYSTS WILL NEVER SAY SELL. THEY SAY, HOLD OR NEUTRAL, WHICH MEANS SELL.
23. BUY IN OCTOBER-NOVEMBER, SELL IN APRIL-MAY. STOCKS USUALLY DO BETTER IN THE BEGINNING OF THE YEAR, & PULL BACK LATER IN THE YEAR. YOU WANT TO BUY ON PULL BACKS & NEGATIVES, & SELL INTO RALLIES-STRENGTH.
24. IF A STOCK IS HOT, IT'S USUALLY TOO HOT TO OWN.
25. GO BACK AND START WITH NO. 1.
WARNING SIGNALS OF STOCKS IN SERIOUS TROUBLE:
1. YOUR STOCK GOING IN THE OPPOSITE DIRECTION OF THOSE IN THE SAME GROUP (SAME TYPE OF BUSINESS)
2. PERSISTENT EARNING WARNINGS, RUMORS OR WHISPERS
3. HEAVY INSIDER SELLING, & EXERCISING OPTIONS & IMMEDIATELY SELLING.
4. BALANCE SHEET CHANGES
5. RECEIVABLES AND/OR INVENTORIES INCREASING (INFLATING SALES) |