1) Buy when every1 is selling, Sell when every1 is buying.
2) Buy quality stocks, and not momentum stocks. Quality stocks will always survive. Momentum stocks move too fast and crash even faster. Once crashed they may never recover.
3) Never invest the money you may need urgently. (As a rule of thumb, keep at least three months' salary in cash, and DON'T even think of investing it).
4) Invest Systematically. Don't spend all you have at one go.
5) Markets go UP, Markets go DOWN. It's just the cyclic movement. So, don't panic (but ensure that you follow the 2nd rule).
6) Diversify your invesment. But don't end up having too many buskets and less eggs (Too many sectors and less shares in each sector).
7) There's 2 ways of earning in stock market. Time the Market, and Time in Market.Even Warren Buffet admits he cannot time the market; so it's highly unrealistic to outperform the best investor in the world. So, let your shares spend time in the market. There's hardly any shorcut.My own addition to these rules (from Rich Dad Poor Dad :) ) - Invest in a company you'd like to own.These are very basic rules of investment (sounds like very boring GYAN though). Don't panic. Plan and invest systematically.
2) Buy quality stocks, and not momentum stocks. Quality stocks will always survive. Momentum stocks move too fast and crash even faster. Once crashed they may never recover.
3) Never invest the money you may need urgently. (As a rule of thumb, keep at least three months' salary in cash, and DON'T even think of investing it).
4) Invest Systematically. Don't spend all you have at one go.
5) Markets go UP, Markets go DOWN. It's just the cyclic movement. So, don't panic (but ensure that you follow the 2nd rule).
6) Diversify your invesment. But don't end up having too many buskets and less eggs (Too many sectors and less shares in each sector).
7) There's 2 ways of earning in stock market. Time the Market, and Time in Market.Even Warren Buffet admits he cannot time the market; so it's highly unrealistic to outperform the best investor in the world. So, let your shares spend time in the market. There's hardly any shorcut.My own addition to these rules (from Rich Dad Poor Dad :) ) - Invest in a company you'd like to own.These are very basic rules of investment (sounds like very boring GYAN though). Don't panic. Plan and invest systematically.
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