Stocks - Some rules

Before we begin into details around stocks, ratios, etc. here are some rules I follow. Thought worthwhile sharing them upfront.

• Even if you get a stock tip from the most reliable resource, do your own research
• If all analyst recommend buying the stock – IGNORE IT!
• If there is a buzz about the stock then STAY AWAY!
• When your mom, dad, MIL, FIL, uncles, cousins, friends, friends of friends talk about stock market – STAY AWAY FROM THE MARKET!
• When no one talks stocks, people advice you it is a dangerous thing, put into it!
• EXTREMELY important - Remember TO SELL!! Selling at the right price is as important as buying
• Be aware of taxation and brokerage costs
• Have a portfolio of not more than 20 stocks and then stick to them for 3 years
• Diversify and keep churning portfolio every 2 months
• Don't track stocks every day (if you are not a trader)
  
• RESEARCH, RESEARCH, RESEARCH

We will discuss some more fundamentals starting the next post. Happy investing!