Investigate before you invest and not vice versa. Buy companies doing business that you understand. In times of panic, be greedy and buy good companies. Control your emotions -- greed and fear. Be honest with yourself -- book a loss if you think you have gone wrong. Avoid momentum investing.
Do not fall prey to herd mentality and take tips with a pinch of salt. Buy more of a stock if it falls, provided you have confidence in the company. Don't gamble -- no day-trading, no leveraged deals and no loan against shares.
Follow your stocks periodically and see that all conditions (such as entry barriers and basic investment ingredients) continue to be in place. Hold a company (stock investment) for 3-5 years. Always look for bargains Look for businesses that are in potential growth areas. Avoid companies that are in a dying business segment, even if they offer value. Invest in businesses which have a sustainable competitive advantage.