Rule Of Investing Long-Term

1. Always limit your losses.
2.Sell only the losers and let the winners ride.
3. Avoid buying stocks based on hot tips.- you should realise that nothing is free and nothing is ever for sure.
4. Do not rely too much on P/E ratio.
5. Do not try to time the market.- Leave the task to the so-called technical analysts who try to beat the market in short run.
6. Do not wait for the market to correct itself.
7. Price is irrelevant.-What is more important is its potential to rise.-you should not pass a chance to buy a stock because you think the price is too high and you can afford only a few lots. On the other hand, you should not buy heavily the so-called penny or low priced stocks because you think they are too cheap and you can afford to buy many lots.
8. Do not try to find the intrinsic value of a stock.-recognises the quality of a stock before the others are aware of it.
9. Do not fall in love with a stock.
10. Value is not equivalent to price.- buy the stock when it is selling at a bargain price, regardless of its true value.