buy low sell high. the laws of gravity apply.. what goes up must come down!
dont follow the herd mentality. everyone buy doesn't mean you should buy. look at the subprime crisis, only the two GS traders and john paulson were firm enough to stick to their guts and beat the market. they got it right when everyone got it wrong.
the market is NOT right.
technical analysis (charting using historical prices) is for the short term and is not a very accurate measure as a predictor of future stock prices. if the reverse was true, everyone would be making tons of money now. stock markets are
semi strong form efficient.
do not listen blindly to remisiers/brokers/stock analysts. remember, everyone is in this for one thing. money. everyone has a vested interest. stock analysts more often than not only tell you to BBB so as to maintain good relations with the company and to generate investment banking business. they get a cut from trading volumes. so whatever reports you read, take it with a pinch of salt. valuations are made by analysts who used their biased judgements in modeling them. you buy, they get commission. you earn money, they get commision. you lose money, they also get their commission.
read up in detail on the company you are keen on investing, know its operations and core businesses, future developments and annual reports.
know the situation of the market and roughly where it is heading to. don't be overly influenced by the media;s optimism/pessimism.
much of the stock markets movements are in fact controlled by hedge funds and institutional investors who have obscene amounts of capital that they use to drive up/push down prices and profit from it.
you can do well trading by yourself using online trading accounts. POEMS.
avoid derivatives and leveraged positions for your case, since you just wanna park some excess cash.
consider investing in foreign stock markets, other countries markets have been beaten down REAL badly (maybe overly so). quite disappointing that the FSSTI is still quite strong.
wanna share which companies you've set your eyes on? would be fun to discuss haha.