Investor’s Checklist

6 Quick Rules for Successful Stock Investing

  1. Successful investing depends on personal discipline, not on whether the crowd agrees or disagrees with you. That’s why it’s crucial to have a solid well-grounded investing philosophy.
  2. Don’t buy a stock unless you understand the business inside and out. Taking the time to investigate a company before you buy the shares will help you avoid the biggest mistakes.
  3. Focus on companies with wide economic moats that can help them fend off competitors. If you can identify why a company keeps competitors at bay and consistently generates above-average profits, you’ve identified the source of its economic moat.
  4. Don’t buy a stock without a margin of safety. Sticking to a strict valuation discipline will help you avoid blowups and improve your investment performance.
  5. The costs of frequent trading can be a huge drag on performance over time. Treat your stocks buys like major purchases, and hold on to them for the long term.
  6. Know when to sell. Don’t sell just because the price has gone up or down, but give it some serious thought if one of the following things has happened:
  • You made a mistake buying it in the first place.
  • The fundamentals have deteriorated.
  • The stock has risen well above its intrinsic value.
  • You can find better opportunities.
  • It takes up too much space in your portfolio.

Stock market investing goes beyond a simple checklist.

Read through Qwoter’s stock market advice for more usefull tips.

See also  Guidelines on How to Choose Mutual Funds
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