Saturday, June 14, 2008

Basic investment rules

Basic investment rules

If a stock got above about its pie share in your portfolio, you suould cut it back so it wouldn't overly dominate.

You may lose some money by trimming winners

If a stock doesn't grow, you should cut your losses and sell.

You must remain hypercompetitive and self-confident.

You should track a stock's performance for weeks before buying, and then build a stake gradually

You should keeps charts comparing your holdings with the overall market and classifying your stocks by category -- growth stocks, aggressive growth, foreign and so on.

Stocks move most heavily at the open and the close

You should buy preferably with a high dividend yield and low price-to-earnings ratio.

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