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Ten Rules of the Blue Collar Trader

By Blue Collar Investment,
BlueCollarinInvestment.com

1. Never take anyone´s word for it. So many times we are led astray and end up losing every time. The question you need to ask yourself every time someone offers you stock advice is, "What is in it for them (meaning analyst)?"
2. Stick with what you know! If you have no idea how tech stocks work or what the line of product each individual company is producing, why buy it? Remember, when you purchase stock, you are purchasing a piece of the company.
3. Don´t gamble! If the stock that you are purchasing doesn´t sit well with you, don´t purchase the stock. It is that simple and there is now use losing sleep over it (trust me I know).
4. Ignore email OTC Alerts! As a matter of fact, refuse to purchase OTC or Pink Sheet Stocks! These types of stocks are a devil in a red dress. Typically what happens is a group of people will jump on an OTC and drive the worth of the stock up. They will then send out a bunch of emails to gain your attention. You will see that the stock is going up as the individual that is promoting the stock is actually pumping it. You purchase at their driven price, then they will all dump and YOU lose.
5. Do not take tips from Chat Boards. This of course follows the same philosophy in step four.
6. Do not be greedy! Greed kills any investor as it causes the investor to push to far, to fast, which clouds judgment. Make a common, reachable goal.
7. Never trade on margin! If you can´t lose it, don´t trade it!
8. Know your enemy! People who first begin to trade feel as though people are ethical in this business! Word to the Wise! No one is your friend in the financial business as everyone it out for themselves.
9. When under pressure, take a deep breath and turn your monitor off. Trust me, unless there is horrible, business destroying news, the stock will be back up.
10. Have fun! We are all here to make money!

Date Created: 2007-03-14