1. The most important single factor in shaping security markets is public psychology.
(IF YOU HAVE LOST MENTALLY, YOU HAVE LOST)
2. To make money in the stock market you either have to be ahead of the crowd or very sure they are going in the same direction for some time to come.
(ALWAYS STAY AHEAD)
3. The difference between the investor who year in and year out procures for himself a final net profit, and the one who is usually in the red, is not entirely a question of superior selection of stocks or superior timing. Rather, it is also a case of knowing how to capitalize successes and curtail failures.
(REFINE AND STRENGTHEN YOUR SKILLS, DO THE RIGHT THING ALWAYS)
4. Profits can be made safely only when the opportunity is available and not just because they happen to be desired or needed.
(DON'T FORCE YOUR TRADE WHEN OPPORTUNITY IS NOT THERE)
5. Willingness and ability to hold funds uninvested while awaiting real opportunities is a key to success in the battle for investment survival.
(HOLD CASH WHEN NEEDED)
6. In addition to many other contributing factors of inflation or deflation, a very great factor is the psychological. The fact that people think prices are going to advance or decline very much contributes to their movement, and the very momentum of the trend itself tends to perpetuate itself.
(PEOPLE DECISION)
7. I feel all relevant factors, important and otherwise, are registered in the market's behavior, and, in addition, the action of the market itself can be expected under most circumstances to stimulate buying or selling in a manner consistent enough to allow reasonably accurate forecasting of news in advance of its actual occurrence.
(LET NEWS TAKE CARE OF ITSELF)
8. You don't need analysts in a bull market, and you don't want them in a bear market.
(BE YOUR OWN ANALYST)
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