Investing in stocks is the best way to generate wealth. Many of us would have taken chances based on tips, recommendation, advisors etc. And, would have had hits and misses.Like everything else in life, stock investing also governed by certain basic principles. And it is not rocket science. Each and every investor can easily learn and apply these principles and produce personal wealth, by following these basic principles of Investing.
- Invest in things you know.
- Avoid fads
- Don’t let a market slump change your long-term investment
- Don’t check the price of a stock (or mutual fund) after you've sold it.
- Dollar-averaging (continuing to invest the same amount of money every month) really works
- Don’t panic.
- Pay attention to what's going on with your investments.
- Hold onto your winners and sell your losers
- Take your losses quickly and your profits slowly.
- Stick to your plan.
- Be realistic about your tolerance for risk.
- Get the best investment advice you can--and then think for yourself.
Source: http://www.swapmeetdave.com/Bible/Invest.htm
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