Stock market investing is a complex ball game.

  1. You need to learn about economic cycles, interest rates cycles and its impacts, foreign policies like war and its impact on economy.
  2. Monsoon (for India at least), political changes and political parties basic investment and economic policies.
  3. A lot many factors. You need to know how to distinguish between rumor and fact. When to buy and when to sell.
  4. A a rule of thumb, buy few quality blue chip stocks and hold for at least 3 years. Don’t watch TV everyday unless you are a trader. All advice on TV is fr traders and their business is to make people transact.
  5. Stock prices are nonlinear and hence it is often futile to time markets. A stock can sit on it price for years and breakout in 10 days to give 50% rise!
  6. All good stock over fairly long term period are near to their all time high price and deviate merely by 1%.
  7. Remember basic tenet of investing : Be fearful when others are greedy and be greedy when others are fearful.
  8. You always have chance to buy quality stocks. In short term stocks run on emotion and hence near rumors or results, you can always bargain for good price.