1. Understand your risk tolerance level
2. Decide your investment horizon
3. Understand the industry
4. Invest in a company with high promoter’s stake (Min 40%)
5. Restricy yourself to index based shares
6. Avoid buying a share because its low priced
7. High PE stocks have low risk : Low PE stocks have high risk
8. Be a seller when everyone is a buyer, Buy when others are selling
9. Do not average your purchases in a falling market
10. Learn to accept losses
11. Remember only 20% are successful in day trading
12. Beware of Rumors
13. Keep away from the market on a budget day
14. Avoid attaching sentiments to your shares
15. Do not invest on borrowed funds