Claude N. Rosenberg, Jr. - "Stock Market Primer"
1. Do not make hasty, emotional decisions about buying and selling stocks.
2. If you are convinced that a company has dynamic growth prospects, do not sell it just because it looks temporarily too high.
3. Do not fall in love with stocks to the point where you can no longer be objective in your appraisal of them.
4. Do not concern yourself as much with the market in general as with the outlook for individual stocks.
5. Forget about stock market "tips".
6. You get what you pay for in the stock market (as in everything else in life).
7. Remember that stocks always look worst at the bottom of a bear market (when an air of gloom prevails) and best at the top of a bull market (when everybody is optimistic).
8. Remember that you'll seldom - if ever - buy stocks right at the bottom or sell them right at the top.
9. Do not buy stocks as you might store merchandise on sale.
10. There is no reason always to be in the stock market.
11. Seek professional advice for your investment.
12. Take advantage of the research facilities your broker has to offer.
13. Remember that the public is generally wrong.
14. Beware of following stock market "fads".
15. Don't be so concerned with where a stock has already been; be concerned with where it is going.
16. Take time to supervise your stocks periodically.
17. Concentrate on quality.
Peter Lynch - "Beating the Street"
Peter's Principles:
1. Gentlemen who prefer bonds are making a big mistake. (Buy stocks.)
2. Never invest in any idea that you can't illustrate with a crayon. (Keep it simple.)
3. There's no point in paying yoyoma to play a radio. (Don't buy a load fund; the noloads do as well.)
4. As long as you're picking a fund, you might as well pick a good one.
5. The best stock to buy, you may already own.
6. If you like the store, chances are you'll love the stock.
7. When insiders are buying, it's a good sign.
8. In business, competition is never as healthy as total domination.
9. All else being equal, invest in the company with the fewest color photographs in its annual report.
10. When even the analysts are bored, it's time to start buying.
North American Securities Administrators Association
1. Receive full disclosure before opening your account about alternatives for buying and selling securities, and how to obtain account information if you cannot access the firm's Web site.
2. Know that most likely you are not directly linked to the market and the click of a mouse does not instantly execute the trade.
3. Get information from the firm to verify advertised claims about the ease and speed of online trading.
4. Ask the company about major Web site outages, delays and other interruptions to securities trading and account access.
5. Find out before trading about entering and canceling orders and the details and risks of margin accounts.
6. Determine whether you are receiving delayed or real-time stock quotes and when your account information was last updated.
7.Review the firm's privacy and Web site security policies and whether your name may be used for mailing lists or other promotional activities by the firm or any other party.
8. Receive clear information about sales commissions and fees and conditions that apply to any advertised discount on commissions.
9. Know how to, if necessary, contact a customer service representative with your concerns and request prompt attention and fair consideration.
10. Contact your state or provincial securities agency to verify the registration/licensing status and disciplinary history of the online brokerage and, if appropriate, file a complaint.