save for investment before consumption. Hold Stock for the Long Term
3. Buy What You Know 4. Dollar Cost Average 5. Keep Your Costs Down 6. Know When to Sell
take objective look at investments periodically;
revisit if the reason you bought the stock originally still apply today;
look for red flag: decline of earnings or dividend growth; higher than average P/E; management change; weakening balance sheet; sharply falling stock price;
sell some of the shares if stock position is too large (e.g. >10% of portfolio);
consider stop-loss order 10-15% below current level
7. Start Now
enjoy the effect of compounding as soon as possible