Avoid looking at daily stock prices and getting worried or excited when they are falling/rising

how about asking – “How can I improve myself to become a better investor than I am currently?”

And then – “What areas should I work on to become a better investor?”

Here are the most fundamental rules you must know and practice if you want to become a sensible investor –

• Look at stocks as part ownership of a business
  • Learn to understand businesses, and differentiate between good and bad ones
  • Think like an owner, and don’t enter stock market for short term excitement…but for long term profits

• Look at Mr. Market – stock price fluctuations – as your friend rather than your enemy
  • Avoid looking at daily stock prices and getting worried or excited when they are falling/rising
  • Avoid making an investment decision based on what the stock is doing – instead consider what the underlying business is doing

• Never forget margin of safety – the three most important words in investing
  • Always pay lot less than what the stock is quoting at
  • Only consider businesses that are simple to understand and simple to run, so that the probability of the management doing something wrong is less
  • Build a good understanding of the business you are getting into, which also provides a margin of safety

Only if you can focus on these principles, and make them your guideposts, you do not need to search for any other success mantra in your investment lifetime.