Avoid greed and fear. These are the investor's Achilles heels. Keeping all your money in the bank earning 3% interest is just as foolish as dumping your entire savings into the market thinking you'll make a quick buck.

Have the courage of your own convictions and don't be swayed by friends who boast about their financial home runs. Last year's winners are often this year's losers.

The higher the yield, the higher the risk. A high yield is designed to attract investors. An outrageously high yield attracts fools.

Give a cold shoulder to cold callers. Never invest in anything based on a phone call from someone you don't know or whose office is a post office box.

Sell before the holidays. Stock prices tend to rise on the last trading day before major holidays.

Invest less at the end of the month. Brokers tend to push stocks at the end of the month in an effort to match or surpass their previous month's sales.

Bulls make money and bears make money, but pigs seldom do. When a stock or mutual fund is up 30%, sell one-quarter of your position.