Prajna Capital - An Investment Guide

· Don't trade on rumors. If you have, ask yourself this: "Over the long run, have I made money or lost money trading on rumors? O.K. then, stop it. · Beware of all tips and inside information. Wait for the market's action to tell you if the information you've obtained is accurate, then take a position with the developing trend. · Don't trade unless you're well financed...so that market action, not financial condition, dictates your entry and exit from the market. If you don't start with enough money, you may not be able to hang in there if the market temporarily turns against you. · Be more careful if you're extra smart. Smart people very often put on a position a little too early. They see the potential for a price movement before it becomes actual. They become worn out or "tapped out," and aren't around when a big move finally gets under way. They were too busy trading to make money. · Never a...