I will add as I think of more, but these are the basic rules you need to follow in order to survive, and perhaps prosper in the market. While there are exceptions to these rules, most of the time, they are sound advice.
Feel free to post your own if I am missing some and I will add to my list!
1. Buy low, sell high (or for you unsavory characters, sell short high, buy low!) 2. Hogs get fat, pigs get slaughtered. (In other words, don't get greedy!) 3. Buy on the rumor, sell on the news (usually true for stocks the runup into news vs. stocks that run AFTER news). 4. It takes money to make money. (In other words, don't expect to turn $100 into $50K) 5. You win some, you lose some, but you keep on fighting! (In other words, never lose your capital or it's game over) 6. Never fall in love with a stock. 7. The only sure bets in this life are death and taxes. 8. If an analyst rates a stock a "buy", you can be sure he has already bought the stock and is looking to unload at a price just below his target stock. Vice versa on "sell" recommendations. 9. Like surfing, ride the MM's and follow them, and you will sail to victory. Attempt to go against them, and you will wipeout. Remember, MM's do NOT play by the same rules on investors and do NOT lose money ever on Market Making activity. Therefore, you cannot beat them. 10. You don't have to be in the game 100% of the time. The sidelines are nice for a break every once in a while. Remember, its better to NOT make money than to LOSE money. 11. There are no such things as PAID bashers. That dumb article floating around "Confessions of a basher" is BS. People bash because they are short, bored, a-holes, or looking for a better reentry price. 12. As a follow up on 12, even if there were paid bashers, 99% of the time, Bulletin Board postings do NOT influence price fluctutations. There are many more investors who invest without ever reading internet message boards. 13. Always keep dry powder on hand. Never know when an opportunity may arise. 14. Most mutual funds and institutions will not buy stocks unless they are NASDAQ or listed and over $5.. However, this does not apply to hedge funds. 15. Don't go "all-in". This is not the World Series of Poker. Don't invest all of your capital in one stock. If you have a favorite, put 1/3 in. Keep the other 2/3 just in case you need to average down.
-------------------- Stick with Repo's plan in '07 - FRPT/DKAM! Posts: 6379 | From: PA | Registered: Dec 2004
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