Ten Golden Rules of Investing

1. Don't be intimidated by the professionals. Small investors have been intimidated into believing that they don't stand a change of beating the market because it is dominated by the big professionals. The truth is, the amateur investor has a better chance than ever at succeeding today. The reason for this is that professionals have a mob mentality, they all act and think the same. The individual investor is able to think independently.
2. Look in Your own Backyard. As an investment strategy, hanging out at the mall is far better than taking a stockbroker's advice on faith or looking to the press for tips. Many of the biggest investment gainers of all time come from places where millions of people go all the time. It is important to note that your own backyard can also be the industry in which you work.
3. Don't buy something you can't illustrate with a crayon. This may sound odd but buy stocks in companies that make things you understand.
4. Make sure you have the stomack for stocks
5. Avoid hot stocks in hot industries. A great industry that's growing fast, attracts too much attention and competitors. It is important to look for great companies in cold growth industries that are consistent winners.
6. Don't get involved with more than you can handle
7. Don't try to predict the future, concentrate on what is actually happening with your company.
8. Avoid weekend worrying
9. Never invest in a company without first understanding its finances. Poor balance sheets lead to the biggest losers.
10. Don't expect too much too soon.