Don't buy stocks when they fall, don't empty when they rise up, and never operate against the trend

A high share price doesn't mean it won't go higher, while a falling share price doesn't mean it won't go down deeper. I never buy a stock when it's falling down, and I never sell when it's rising up.

Ignore the market insiders, they are just cheerleaders of the company; only through your own experiences and researches can you make money

I never pay attention to the actions taken by the market insiders, the directors and the management people. People in the inner circle often have a very poor judgment on their own stocks. They know too much and they are too close to see their shortcomings. Most of the important senior executives are ignorant about the stock market. Especially, they don’t understand the technical indicators and collective action characteristics of the stock market. They are reluctant to admit that the stock market is different from the business they run. In other words, you might be a wireless broadcaster or car expert, or a steelmaker, but you still don't know anything about stock trading, especially in a volatile stock market. The chief executives of most companies are not different from cheerleaders. He must reassure shareholders again and again that everything is fine. If the performance falls down, he will tell shareholders that the decline is a minor problem caused by a temporary problem. If the profit figures fall down, he will assure shareholders that the company has taken actions, and have a perfect plan to revive the profitability. So there is nothing to worry about.