Valuable Lessons

I learnt a few valuable lessons today through the stock market.

1. Only buy stocks which are fundamentally sound
   
2. Decide your investment horizon (long term/short term)
3. Do not chase after stocks (a.k.a the Greater Fool game)
   
4. Exercise discipline and cut loss immediately once the level is reached
   

Although the stock I bought was of reasonably good fundamentals, I think I paid a premium for it. Definitely not worth it. Will not commit the same mistake again.

I'm usually in for the long haul. In fact, I have not done any short term trades since I started.

I'm still not good enough in terms of reading the market. Lack of practice. Point 4 is really not that easy to achieve. However, it tells me that I am more suited for long term investments rather than short term. Better stick with all the ratios and numbers at the moment.