Book Summary Preview :
24 Essential Lessons for Investment Success

Take investment lessons from the expert. O'Neil started out with $500 just out of college, and by age 30 had purchased a seat on the New York Stock Exchange and opened his own investment management research firm. In 1963, he was the first to create a computerized database for stock market research that is used today by 400 major US institutions. With decades of investing experience, the author shares the lessons he has learned in a simple question-and-answer format, for those who may be first-time investors getting their feet wet, and to improve the performance of those who may have been playing the market for some time. Learn common-sense strategies, know when to buy and sell at the right time, and successfully manage your own portfolio. Your journey to financial security and freedom begins here.

Lesson 1. What Every Investor Should Know Going In

• Cut your losses early. It's like buying fire insurance.
• Always cut your losses at 8% below your purchase price.
• Acknowledge that you don't have all the answers!
• Always sell your worst performing stock first, not your best-performing stock.
• Do not make emotional decisions. We tend to get attached to our trading decisions and cannot admit our mistakes.

Lesson 2. Getting Started: There's no time like the present!

• You don't have to wait until you have the right job or reach the right age, start now and gain experience over the years.
• Decide whether you want a full-service broker or a discount firm.
• Research on the stockbroker you're considering. Where do they get their information? Are they truly interested in products that are right for you? How much commission do they get if they are a discount brokerage? Do not go with low commission firms.
• Open a cash account first, and then after a few years' experience, consider a margin account that lets you borrow money from your broker.
• Each week you must spend time tracking your investments. Learn to read charts so you get the facts, not opinions.
• As a beginner, avoid volatile investments, such as low-priced stocks, futures, options, and foreign stocks. Most of the outstanding companies to invest in should be between $15 to $150 a share.
• It only takes $500 to $1000 to get started. Add to your investment account from savings from your salary. . . . . . . . . . . . .