A Beginner's Guide to the Stock Market

Buy the strongest stocks that keep moving up. Add to your winners, get rid of your losers, and don't get too greedy.

Bulls make money, bears make money, but pigs get slaughtered. A greedy trader who ignores his stop losses and other exit signals will give back all of his profits, and then some.

"Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep. I know where I'm getting out before I get in. The position size on a trade is determined by the stop, and the stop is determined on a technical basis."

'I just lost my money, now I have to do something to make it back.' No, you don't. You should sit there until you find something."

"Markets can remain irrational longer than you can remain solvent."

"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."

When all of the experts agree, then something different is going to happen in the market. The current conventional wisdom is always already priced into the market.

If you are looking for a good long-term investment, buy a company that has the highest sales in its industry. So for home improvement, you want to own Home Depot; for fast food, McDonald's; for toothpaste, Colgate Palmolive; for payments, Visa; for smart phones, Apple; and for social media, Facebook. Once a business sells more than any other compan

As long as the market is going up, and your stock is going up, don’t be in a hurry to take profits. In order to win at this game, you will need to have some big winners. Don’t choke them off too soon.