1) Diversify your investment portfolio intelligently. You can invest a certain portion of your portfolio in other asset classes such as gold, bonds, and cash alternative. So even if one investment fails, the other investment in your portfolio will balance out the loss. Don't put all your eggs in one basket!
2) Placing a trailing stop order is another secret of stock market success. Trailing stop is a stop-loss order set at a percentage level below the market price and it is used as a way to protect gains and limit losses.
3) Buy stocks when the market signals the start of a bull trend and sell them when the bull trend has ended (A bull trend is a series of rallies where each rally exceeds the highest point of a previous rally).
4) A good trading plan is one of the secrets to having the confidence to trade in the stock market. Your trading plan must be realistic and includes all the details such as which markets you will trade, how much profit you want to achieve, and which strategies you will follow.
5) Avoid blindly following fads. Following market fads may cause you to purchase an overvalued stock. When everyone starts talking about a particular stock, you are probably too late.
6) Monitor the market news and stay up to date on the current events/developments. The world events such as political unrest, crime, changes in oil and energy prices can have a direct impact on the prices of stocks.
7) Don't get all your information from a single source! There are so many different sources of advice, from television, radios and newspapers to websites and chat rooms.
8) Do not hold too many shares at the same time as this can make it hard for you to monitor the performance of individual company shares.
9) Don't purchase unpopular and inactive stocks. Inactive securities are fairly illiquid and trade in very small volume on a daily basis.
10) Being well prepared is a secret of success that many people miss out on. It is very important to create a successful trading strategy before any investments have been made.