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Research: Before you buy any stock get the annual report for the company and read it fully. If there are sections you don’t quite understand ask your friends or do research to find the understanding you need about the report.

Leave Emotions at the Door: Always leave you emotions out of how you buy and sell stock. Stock prices always go up and down daily. These fluctuations can be small swings or large ones, don’t freak out and let your emotions get the better of your judgment. And above all things if the market as a down day and you see your stock go down a lot do not sell it off for a loss. The market has down days and it will normally recover to a better level later. Many people sell when the market goes down due to emotional fear of the money they lost, don’t you be one of them.

When to Sell Stock: When you buy a stock you decided at what amount you wanted to buy it at. Selling stock works the same way. Decide ahead of time at what price you want to sell it. You have done your research, you keep up with the news and you made a choice to buy. Do the same thing when you sell. When the stock reaches the price you want to sell it, don’t wait around to see if it is going to go higher. Waiting might cost you more then selling it at your chosen price and then it goes up a bit more. Investing in stocks is a waiting game, patience can be your best friend.

Don’t follow the crowd: Many people buy and sell stock by following what other investors are doing. While you can earn money that way, you also lose money because stock prices react to a large number of people buying and selling a certain stock. Decide what to buy and when without following the crowd.

Long term or short term: Before you get into buying stocks, decide if you will be buying stock for long term investment or short term profit. Which way you are buying stock will determine how and why you buy a certain stock. Long term buying you want stocks that have a proven track record of steady growth and income, companies you would expect to stay around a long time to come. Short term you want stocks which rise and fall in price a bit more, that way you can buy at a low time and sell when it goes up for a profit. Short term stocks buying is a bit more risky since the prices may change wildly at times and you may be selling the stock the same day you bought it. Always know why you are investing in stocks.

Investing in stocks can be easy just get the right tips. Knowledge is a must for investing in stocks?. Free reprint available from: 5 Tips for Investing in Stocks.