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US unemployment aid applications stay at 370,000 ,

Buffett’s Berkshire to buy Media General papers , and

Wal-Mart’s 1Q profit up 10.1 percent !

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The Five Dos and Don’ts

Anyone could become a better trader just by becoming or remaining aware of some simple but important “do’s” and “don’ts.” Not to be redundant, because many of our readers has probably heard or read theses fundamentals before. However, I would like to reinforce these five essential ideas in reference to trading or buying stocks.

1. Don’t Trade More than You Can Afford
The “bet it all on black or red” theory could yield a huge profit, but more than likely over the long run, it will lead to bankruptcy. Don’t enter a trade unless you fully understand and appreciate the risks involved.
2. Do Learn As Much As Possible About the Company
It pays to know precisely how a company earns its money. Therefore, pick up an annual report and read about the company’s operations, management, revenue sources and its operating history, if it’s not a new up starting company. This information will give you an idea of how reliable the overall business operation of the company may be.
3. Don’t Be Impatient
While you’ve have the annual report in your hands, check out how the company’s sales are doing. Check its sales trends with profitability and growth. After all, growing sales are a solid sign that things are on the right track. Successful trading and investing requires work and time.
4. Do Have Reasonable Expectations
When you are analyzing any stock, compare its overall performance with other similar companies. That makes for a useful apples-to-apple comparison. You might discover that a company is lagging behind its sales, profits and growth versus it competitors.
5. Do Look at the Company’s Finances
A company may be selling its product faster than it can manufacture it, but if the debt incurred by those manufacturing costs outpaces sales, the company may be headed toward a cliff. Therefore, look at a company’s overall financial debt, assets, and spending patterns, and get a feel for how well the company may be managed. This is better than listening to “Uncle Joe” who probably hasn’t had a profitable trade since 1970.

In other words, no one cares as much about your money as you do!