The success of investing in stock market depends on your wisdom rather than luck.
First,when it is a bull market,you should keep your money in and when it is a bear market you should keep your money out.Yes,it is easy to say than to do.However,hard work of study and experience can get you onto the right way.
There are some basic rules and tips you have to pay attention.
1.Don’t put all your eggs in one basket.
You never invest all your money in one stock.You should choose several stocks,for example five or six,instead of only one,and evenly spread you money into these five or six stocks.
2.When you decided to purchase a stock,you should purchase its shares in several times so that you get a time average.
3.If there is an IPO (Initial Public Offering),don’t jump into it unless you want gamble,because no body knows the market reaction toward it.
4.When the market has a very high volatility,you should keep on the side line and raise cash in hands.You should go back to the market only when the market is settled down and showed a steady growth.