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TOP 50 RULESTOP 50 RULES

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INVESTINGINVESTING

An attempt at making aquick buck usually leads tolosing much of that buck.

#1

If stocks in general don'tseem cheap, stand aside.

#2

Buy and hold doesn'tALWAYS work.

#3

Never throw good moneyafter bad (don't buy moreof a loser).

#4

Cut your losers, and letyour winners ride.

#5

If the investment soundstoo good to be true, it is.

#6

Don't fight "the tape" (thetrend.)

#7

Don't fight the Fed (interestrates).

#8

Most stocks that fall under$5 rarely see $10 again.

#9

The best hot tip: there isno such thing as a hot tip.

#10

Don't fall in love with yourstock; it won't fall in lovewith you.

#11

Don't have more than 3%AT RISK in any oneposition.

#12

The trend is your frienduntil the end.

#13

Trading options often leadsto a quick trip to thepoorhouse.

#14

Bear-market rallies areoften violent; giving theillusion the bull is back

#15

Low-priced stocks don'tdouble any faster thanhigh-priced ones.

#16

Valuations don't matter inthe short run.

#17

When a stock hits a newhigh, it's not time to sell.Something is going right

#18

Have a rose gardenportfolio (don't trim yourroses while your weedsfester).

#19

It takes courage to be a pig(don't settle for taking 10%profits).

#20

Not selling a stock for again, simply becauseyou're afraid of the taxes,is a bad idea.

#21

Avoid limited upside,unlimited downsideinvestments.

#22

When all you're left with ishope, get out.

#23

Don't keep losing moneyjust to "prove you areright." Nobody cares.

#24

Forecasts are useless.#25

Have patience and stickwith your discipline.

#26

When it's time to act,don't hesitate.

#27

Expert investors careabout risk, noviceinvestors shop for returns.

#28

Don't lose money.#29

You can learn more fromyour bad moves than yourgood.

#30

A rising tide raises allships, and vice versa, soassess the tide, not theships.

#31

Stocks fall more than youthink and rise higher thanyou can possibly imagine.

#32

Very few people havehad great success shortselling, even in bearmarkets.

#33

You can't know everythingabout everything.

#34

Since you can't knoweverything, seek outspecialists who know theirareas.

#35

If a company's sales areshrinking, the businessisn't growing anymore.

#36

Real estate cycles are notthe same as stock marketcycles.

#37

Investing in what's popularnever ends up making youany money.

#38

Know your investmentedge, and don't stray toofar from it.

#39

Bear markets begin ingood times. Bull marketsbegin in bad times.

#40

Bear markets begin in good times. Bull markets begin in bad times.

#40

Buy value - stocks thatare priced less than theirunderlying assets areworth.

#41

Neglected sectors oftenturn out to offer goodvalues.

#42

There's usually only onereason corporate insidersbuy stock.

#43

Don't miss a good one bybeing too concerned withthe exact price you pay.

#44

Avoid popular stocks, fadindustries and newventures.

#45

Buy shares in businessesyou understand.

#46

Try to buy a stock when ithas few friends.

#47

Be patient: don't be rattledby fluctuations.

#48

Mutual funds under-performthe averages over the longrun. Buy index fundsinstead.

#49

If you don't understand theinvestment, don't invest.

#50

Millions of investors break these rulesevery day.

Most of these investors are today tryingto get back to where they were...

Hence Rule No - 51.

The people who suffer the worst lossesare those who over-reach.

Presentation by. Shaji Hakeem Source:

#51