1. A thorough research for the stock is a must before entering in a stock. definitely have a look at few days, one month, six months, one year and three years chart. Go through company’s financial details like balance sheet, profit and loss, quarterly results and yearly result, growth pattern, year to year and quarter to quarter growth details, Price-Earning Ratio (P/E), Return on Equity (ROE), Earning per Share (EPS) etc.

2. Analyse the tips given against your parameters and thereafter make purchase.

3. Spread your investment. Best is to buy a stock each in best sector and preferably buy market leader.

4. Avoid bulk purchases of a share as a wrong decision and you may be wiped.

5. Best method to buy a costly share like say Larsen and Toubro is to buy 20 shares when it goes down to 750. One can buy another 20 when it touches 730 and thus one can buy another 20 in small dips. Do remember to read the balance Successful Stock Trading Tips to make money from stock market.