Twenty-four Essential Lessons for Investment Success, a book written by William O’Neil, is a great resource for stock investment tips, especially for beginners. The tips are highlighted again at the end of each chapter.
The best thing as far as the book is concerned is its simplicity. Here are some of the best tips from the book:
#1: If you are new to investing in stocks, then you should be prepared to absorb some small losses.
#2: Try to restrict your losses at 8 percent below your buying price.
#3: Persistence is the key, if you are in the process of learning to invest. Never get discouraged.
#4: You cannot learn to invest overnight. You need to put in time and effort in order to become good at stock trading.
#5: If you are planning to take up stock trading, you must choose to work with a right full-service or discount brokerage. Always work only with a stock broker that has a proven track record.
#6: If you are a beginner stock trader, you should open a cash account with a broker and not a margin account.
#7: A stock trading account can be set up for about $500 to $1,000, but it is your experience that makes you a great trader or investor.
#8: It is a good to avoid volatile types of investments like options, futures and foreign stocks.
#9: It is important that you concentrate only on a few, good quality stocks. Don't try to own tens of stocks in the beginning itself.
#10: Emotional involvement should be avoided when trading/investing in stocks. Just decide on a set of buying/selling rules and then stick to them.
#11: Never buy a stock valued under $15 per share. Best companies are often leaders in their niche and will not be available at $5/$10 per share.
#12: If you learn from the best winners in today's stock market, you can get to tomorrow’s leaders without any difficulty.
#13: Always carry out an analysis of the trades you place. This will help you to learn from your mistakes and successes.
#14: In order to pick up winning stocks, employ a combination of technical and fundamental investment styles.
#15: Fundamental analysis is all about a company’s earnings growth, sales, return…
