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TOP 50 RULESTOP 50 RULES

toto

INVESTINGINVESTING

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

#1

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

#2

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Buy and hold doesn't

ALWAYS work.

#3

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Never throw good moneyafter bad (don't buy more

of a loser).

#4

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Cut your losers, and letyour winners ride.

#5

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

#6

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

#7

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Don't fight the Fed (interestrates).

#8

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Most stocks that fall under

$5 rarely see $10 again.

#9

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

#10

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Don't fall in love with your

stock; it won't fall in lovewith you.

#11

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

#12

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The trend is your frienduntil the end.

#13

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Trading options often leadsto a quick trip to the

poorhouse.

#14

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

#15

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

#16

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Valuations don't matter inthe short run.

#17

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

#18

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Have a rose garden

portfolio (don't trim yourroses while your weeds

fester).

#19

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

#20

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Not selling a stock for again, simply becauseyou're afraid of the taxes,

is a bad idea.

#21

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Avoid limited upside,unlimited downsideinvestments.

#22

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

#23

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Don't keep losing money

just to "prove you areright." Nobody cares.

#24

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Forecasts are useless.

#25

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Have patience and stickwith your discipline.

#26

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

#27

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Expert investors care

about risk, noviceinvestors shop for returns.

#28

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Don't lose money.#29

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You can learn more fromyour bad moves than yourgood.

#30

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A rising tide raises all

ships, and vice versa, soassess the tide, not the

ships.

#31

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

#32

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Very few people have

had great success shortselling, even in bear

markets.

#33

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You can't know everything

about everything.

#34

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Since you can't knoweverything, seek outspecialists who know their

areas.

#35

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

#36

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Real estate cycles are notthe same as stock marketcycles.

#37

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

#38

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

#39

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Bear markets begin in

good times. Bull marketsbegin in bad times.

#40

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

#40

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Buy value - stocks that

are priced less than theirunderlying assets are

worth.

#41

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Neglected sectors oftenturn out to offer goodvalues.

#42

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There's usually only onereason corporate insidersbuy stock.

#43

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

#44

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Avoid popular stocks, fadindustries and newventures.

#45

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Buy shares in businesses

you understand.

#46

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Try to buy a stock when ithas few friends.

#47

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Be patient: don't be rattledby fluctuations.

#48

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

#49

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

#50

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Millions of investors break these rules

every 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 HakeemSource:

#51