DO YOU OWN HOMEWORK AND OWN WHAT YOU KNOW

There is no substitute for your own work. Buying a stock because CNBC recommended it, or because your uncle recommended it, or the stock chart looks good is a sure way to lose money.

Successful investors know what they own. They buy stocks of companies with products they believe in. Successful investors go the extra mile to analyze the financials of the company to make sure they're not missing anything. Remember, most of the extraordinary gains made in the stock market come after a stock is punished or after it has already risen a lot, but you're not going to have the conviction to stick with it unless you really know the company.

"You have to know what you own, and why you own it." Peter Lynch