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Wednesday, August 04, 2010

Investment Tips

1. You don't have to be right all of the time to make a ton of money.

2. Pull the weeds, not the flowers. Be quick to sell the stocks that don't work out and slow to take profits on the winners.

3. Act on facts, not emotions.

4. Use a disciplined approach. Stick with a system that fits your style and use it every time you make a move. Then, if you see some areas to change for better performance, do it, but stay with the system and don't second-guess yourself.

5. In the long run, earnings drive stock prices, period.

6. Buy high and sell higher. In other words, don't rule out a stock just because it's at the top of its trading range.

7. Never force a trade. If nothing looks good, sit tight, there's probably a reason.

Remember, do not invest any money in the stock market that you can not afford to lose. Research companies before you invest and always invest in a growing industry that you understand.