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Wednesday, February 24, 2010

Five Rules To Consider Before Trading Individual Stocks - DailyFinance

Five Rules To Consider Before Trading Individual Stocks -: "When we think about investing, most people think stocks. But the truth of the matter is, the majority of investors aren't trading stocks on a day to day basis. They've put their money in the hands of mutual funds: baskets of investments with managers who do the bulk of the work for them. It's one of the most efficient ways to invest because you automatically have your hand in hundreds of different investments. When one bottoms out, the logic goes, the others are there to pick up the slack.

But maybe you want to dabble in stocks. You're interested in the inner-workings of individual companies, and you want to get more hands on. That's okay, too. Superstar investors like Peter Lynch and Warren Buffett made their names -- and fortunes -- by being smart pickers of individual stocks"

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