Stock Buying Rules

As I was going through my stuff, I found a list of rule for buying stocks. I assume I wrote them while watching Jim Cramer.

  1. Never buy on margin.
  2. Never use market orders.
  3. Know what you own.
  4. Do not own too many low-priced stocks.
  5. Be diversified.
  6. Own dividend stocks.

I have bought with market orders. I plan on owning stocks/ETFs for a long time, so I don’t think that paying a bit more is that big of a deal. Plus, many times when I put in limit orders, they sit unfilled for weeks, so I just bite the bullet and buy. So far it has worked out.

Big Jim knows the way to succeed in the stock market is to have a plan.

“Regret” (1887) by Miguel Navarro Cañizares (c. 1835 – 23 October 1913), image from Wikimedia,  assumed allowed under Fair Use.

One Reply to “Stock Buying Rules”

  1. Sounds like solid rules to me. Limit orders are a nice way to control impulses. Wanting to own a stock at any price is different than wanting to own a stock at your right price. Market orders do have their place.

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Page created on 2018-08-12_0:29:43, last modified on 2022-02-17_19:14:46.

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