Stocks Intermediate: 20 Stock-Investing Tips

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1.
What sort of expectation should a stock investor have regarding success?
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Success should be something you are willing to wait for. Even though stocks have historically returned in the 10% range, you must still have patience when investing in them. If you expect to get rich quickly, you will most likely be disappointed, and you may find yourself drawn to speculating, which is very volatile.
2.
A good investor ______.
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Is willing to go against the crowd. The crowd is often -- but not always -- wrong.
3.
The future is unpredictable. But you can protect yourself against unpredictability by having a margin of safety built into a stock that you buy.
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True. A margin of safety -- for example, paying less for a stock than its book value -- can dampen the effect of the futures unpredictability.
4.
Being a stubborn investor will always pay off.
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False. Often, being stubborn will lead to losses. If youre holding a stock whose company is foundering, it may not be wise to hold onto it.
5.
Past performance is sometimes a good _______ of future results.
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Indicator. Though past performance is not a guarantee of future results, it can still be a good indicator of good results. Still, do your homework.