There are an infinite number of smart stock investing tips out there. An hour spent on the internet would find you thousands. However it does not take much to figure out that they can not all be the successes they claim to be.
Below is a rough set of tips or guidelines to help you figure out your own stock picking system.
Do not believe every stock tip you see
One great tip is not to go into Google, search for hot stock tips and buy a load of stocks that show up in the results. Such a strategy could be compared to gambling. Every such stock tip that you read about should be treated exactly as any other potential investment. In other words research it like you would any other company. Also do not be scared of missing the boat or being rushed into any investment. All of the best investments tend to appreciate in price over a long period of time. Do not be rushed into investing your money.
Never stop learning about the markets
Research is your friend. Ask friends about the companies they work for, read the papers, take some financial books out of the library, research on the internet. Familiarity breeds knowledge so the more you can read about the stocks you want to invest in, the more of an informed decision you can make.
Take your time before buying
Often if a stock suddenly becomes attractive, maybe due to some recent news released it does not always pay to buy straight away. Often the price will spike for a few days before falling back a little as some investors take some profits.
Do not be stubborn
If you have made a bad investment and lost money do no be afraid to sell the stock and take a loss. It is better to lose 10% than 50%. Always set a stop loss to minimise your risks and re-evaluate the stock if the limit is reached.
If you are unsure seek advice
If you are unsure then do not be afraid to seek advice prom a professional financial advisor or broker. Be aware that they will likely be seeking commission so take any advice with a pinch of salt, however do not always ignore it.