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A Beginner's Tips for Stock Market Investing

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Investing in stock markets is always a gamble, but there are certain principles one can rely on for long-term investments:

1. Hold on to winners, Get ride of losers - Sounds obvious, right? Time and time again investors take their profits by selling appreciated investments, but hold on to declining stocks in the hopes that they'll come back. Be realistic about investments that are performing badly, and get rid of them when their decline is protracted. Always rely on your personal research to help decide winners and losers.

2. Don't rely on "hot tips," even if they come from inside sources. Luck has never been essential to a long-term investor.

3. Don't panic when your investments don't pay out short term and rush to get rid of any stock that declines - only axe long-term decliners.

4. Don't overemphasize the P/E Ratio - it's only one key tool among many others.

5. Resist the temptation of "Penny" Stocks - just because the price is low doesn't mean you won't lose out.

6. Everyone uses a different method to pick stocks and investments, but once you find your preferred method, sticking with it important. An investor who switches tactics often is liable to be inconsistent in gains.

7. Focus on the future - base your decisions on future potential, not past experience.

8. Think long-term - don't be suckered into the "Get in and get out," approach.

9. Be open-minded - by doing your research, you can potentially discover the small company that becomes the blue chip of tomorrow. Don't only focus on big-names.

10. Taxes are a secondary concern and not a primary one.

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