Whats a rule of thumb for investing in the stock market?

There are several.

1. Do not chase past returns. People that buy funds because they have done well in the past are doing exactly that.

2. Do not market time. Market timing is buying based on your (or your newsletter, or your TV, or neighbor's) guess about what is going to happen in the future. Even if someone knows something, you've already missed the boat. The price already reflects what you just found out.

3. Use index funds. Over time, index funds outperform actively managed funds, mostly because they do not have those high expense ratios. Some actively managed funds do beat their index, but the ones that do usually do not do so consistently. So why gamble? Use index funds. If you want to use a few actively managed funds, make sure that the costs are very low. Vanguard has some good ones.

5. Diversify. Don't put all your eggs in one basket. Own a mix of bonds, domestic equities (large, small and mid cap funds), an international fund and perhaps a REIT (Real Estate Investment Trust) and emerging market fund. Four to six funds is all you need. Know your risk tolerance and set up an appropriate asset allocation. Rebalance as needed.

6. Consider taxes. Use the least tax efficient funds in your tax-deferred accounts and the most tax efficient funds in your taxable accounts.

Also, avoid 'financial advisors'. 95% of them are salesmen selling products and their advice is set up to sell you products that make THEM the most money.

http://www.saveyournestegg.com/scam.html

Very simple - The market is always right, don't fight it.

Here are some the rules I've been following

The first and primary rule should be never enter into a trade without knowing when and where youâ€™re going to close the trade.

Never invest on emotions; feelings have no place in determining investments.

Only buy stocks with real sales and real earnings, does not apply to pennystocks since they are crap shoots and are traded as fun things and not as investments.

Only consider buying stocks with each of the last three years' earnings up 25%+, return on equity of 17%+ and recent earnings and sales accelerating.
Avoid cheap stocks, buy only higher quality stocks selling $10 a share and higher.

Never buy if the firm is filing or in bankruptcy.

Learn how to use charts to see sound bases and exact buy points.

Stay with up trending stocks, never buy on down trends. This does mean â€œthe trend is your friendâ€.

Always buy companies with new ideas, styles or products.

Cut every loss when itâ€™s 8% below your cost. Make no exceptions so you can always avoid huge, damaging losses. You can always average â€œupâ€..

Follow selling rules on when to sell and take profit on the way up.

Never average down

Always sell when management cuts sales or earnings forecasts

Buy when market indexes are in an uptrend. Reduce investments and raise cash when general market indexes show five or more days of volume distribution.

Pick companies with management ownership of stock.

Select stocks with increasing institutional sponsorship in recent quarters.

Good luck

Diversify, cut your loses early... Real simple

The trend is your friend, Do not bottom fish or top pick.

Very simple. No one has ever lost money in the stock market because they diversified and left the money in too long. Two rules of thumb: Its time in the market, not timing of the market. Second, diversify. Not just amongst different stocks, but stocks in different industries. Good luck!

Always remember: Buy low, sell high.

Research, Learn the tools of the trade; fundamentals, chart analysis, exit strategies, and money management. You have to educate yourself.

Buy when the risk of loosing money is low and set your target gain sell level and stop loss low level prior to buying.
If you follow this, your gains will come.

IÂ´ve been investing for more than 20 years and trading for almost 14, and I can tell you that if you want to make BIG and FAST profits, I recommend you trading rather than investing, trading can help you to go from rags to rich.

If you are investing, you must have already achieved some degree of financial success, long term stock investing and FOREX can help you become much richer than you are today.

My experiences as a Nasdaq Market Maker, Head trader of several brokerage firms, and currently as a professional trader and private hedge fund manager, I can suggest you that:

We trade because we want quick, short term profits on a consistent basis. We want to cash flow the market. Milk it like a cow.

Make consistent, small, short term gains rather than trying to hit a home run on every trade. Don't ever forget that.
Don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.

For me "All stocks are equally worthlessâ€

I don't hold on to any illusion that the stock market will continue to go up and provide a nice retirement for me.
I could care less which way the market goes. It's irrelevant to me if the market goes higher, crashes or moves sideways for the next 50 years. I really could care less. Stocks are just four letters with two prices next to them that I use to make a living trading.

Trade ONLY when you have a clear, easy and identifiable advantage, because without a CLEAR EDGE your odds of success are NO better than a flip of a coinâ€¦ ThatÂ´s why so many new traders (and investors) lose money.

Take a look at any daily chart of any index or stock and you'll probably see the most volatility and the biggest opportunity for profit during the first Hour of the stock market's opening.

The popular thinking and conventional wisdom is that you should wait about an hour before you start trading.

But if you do, you'll miss the big, fast moves that stocks make as all the amateurs let their emotions out through their
online accounts, usually right after they read some news headline or hear Maria Bartiromo go off about a stock on CNBC.

It's easy to see why trading the open is the market's prime time for profiting from other online traders.
The market's open is very volatile - that is the perfect environment for LARGE, FAST profits.

Learn to trade as a professional Market Maker ,not as an emotionally driven amateur trader or investor with few thousand dollars in an account at Etrade.

There isn't any other time during the day or any stock you can invest in, that can make you 1, 2, 3, 5, 7 or more points
in minutes OTHER than during the first hour the stock market is open. That's why I love trading the open so much.

I trade only when I have an edge and that means "only the first hour the market is open".

If you are a beginning trader, you can give yourself an unfair advantage in the market trading this way.

I can carry on with the advises about how to make money trading, but if you ask me:

"What is the best thing you can do for me?

I will say:

Give yourself a BIG favor and go to this "Top Secret" site and learn how to get the BEST stocks that will make the largest and fastest day trading profits youÂ´ve ever seen...

www.onehourtrading.com

After you review this site you wonÂ´t need system, strategy, book, software or mentor to tell you what to do,
you will be able to profit HUGE every day.

Good luck and good trading,

Jonny

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