Any stock 101 guide will tell you that the first and most important rule of stock investing is to do your homework.  Stock investing starts and stops with you doing your homework.  It’s important to do it before you buy an investment and it’s important to do it before you sell an investment.  Many investors don’t know this and suffer as their stocks plummet.  Beginner stock investors are the guiltiest of breaking this rule because many go blindly into a stock not knowing the company.  Think of it like this, would you drive a car blindfolded.  No you wouldn’t because the end result would be ugly.  Yea, this rule might be such simple stock knowledge, but if you want to be a successful investor, this rule is a must.

If you have kids, I’m sure you’ve all yelled at them:  DO YOUR HOMEWORK!  You know that no matter how useless some of the things they learn, they have to do it.  The have to keep learning the different subjects until they find their own career.  Yet we can all relate to what they are going through. Please do not think this way when you’re investing in stocks!

If you’re guilty of being one of those people who doesn’t do their stock 101 homework, you’re probably thinking one or both statements below.
1) “If I buy and hold a stock long enough, it’ll come back up.”
2) “I don’t have the time to do the homework.”

If for some reason, your brain is saying the first statement in your head, tell your brain to stop.  This statement is completely false.  Although this is stock knowledge that many beginner stock investors have, it’s important to let this thinking go. You can never say that a stock will come back up after a drop in price because this thinking goes against all stock 101 rules.  It’s not good stock knowledge.

If the second statement applies to you, you might want to second guess yourself.  Make you’re not being lazy.  You know what I mean.  Of course nobody wants to give up any portion of their weekend but no body said investing is easy.  So just make sure you really don’t have the time and if you don’t, then you might want to give up being a beginner stock investor.  The great Mr. Cramer, a famous financial analyst and stock 101 teacher, says that an investor should do at minimum one hour of stock homework per stock held in your portfolio.  If you know that you don’t have the time (Don’t Be Lazy) then don’t waste your time and money because you won’t win many battles in the stock market.  Listen to this great stock knowledge and don’t make a stupid stock 101 mistake like not doing your stock homework.

If you found this rule helpful and wish to seek more information to increase your stock knowledge, please visit stock 101.  There you’ll find many important rules and tips that are important for all investors, not only beginner stock investors.  Visit this site here, stock 101.