During the wine and cheese function I attend the other night I heard some of the most useful and strait-forward commentary on investing that I've heard in a very long time. Som Seif, the CEO of Claymore said that setting up your own guidelines for investing is something you have to stick to. It will keep you out of trouble, as falling in love with a stock is the best way to lose a lot of money! (Just take a look at Nortel.)
Just because a stock hit a high price doesn't mean they will EVER hit that again. If all of a sudden they change their divided in a negative way it's time to re-think that stock. Is it still a reasonable holding? Do you see them fixing their trouble and moving on? Or is the ship sinking?
These are hard things to know for small investors such as ourselves, but it is very worth your while to talk to your friends who invest, talk to me, watch the smart guests on BNN (Market Call & Market Call Tonight).
Don't be afraid to take some profits too... When the market is going ganbusters then you might want to sell some of your holdings into that market strength.
Selling into strength and buying into weakness is the name of the game!
Sail well my friends.