Dan Fitzpatrick - Investing Advice

Some good investing advice courtesy of Dan Fitzpatrick, investor + contributor to subscription site Realmoney.com:

"Recognize that TRADING IS HARD...and the biggest reason it is hard is because we are 'hard wired'. We get greedy when we should be fearful; we get fearful when we should get greedy. We need to accept that the market will do what it will do. When a big fund decides to liquidate a stock that you hold a big position in, that stock will fall. But the inconvenient truth has nothing to do with global warming. The inconvenient truth is that the fund manager doesn't call you and give you a head's up about what he is doing. He just does it. How rude! So you just sit there and ponder the red on your screen. Analysts are the same -- they never give you advance notice that they are going to be changing their rating on a stock (at least, they don't give YOU advance notice -- but I sure can't say that as a universal truth. Remember, this is Wall Street). So you've got to do your own homework -- get a handle on the fundamentals of the company. Know what metric is the most important metric for the sector or group you are watching. Know your timeframe. Use charts and analysts' price targets to determine your potential reward and your probable risk. Know your trade. Plan your trade. And then trade your plan. Do that, and you won't be the guy who gets his lunch stolen by those who can afford to buy their own."

Data Courtesy: Realmoney.com, snagged on 3/25/08.