BANGALORE: How often we have dreamt of a magic formula which only George Soros and Warren Buffet seem to possess, with regard to their wealth accumulation on the bourses. Yes indeed we as investors have read many a book on their investment styles, psychology of investing and what not so as to replicate even a small measure of their success.

 But unfortunately there doesn’t seem to be a magic formula for success in the markets. Well there may not be a magic formula, but if as an investor you choose to follow some basic common sense principles mentioned below-you really will not go wrong.

1. Make right choices

Buy a Winner, Own a Winner. That’s right. You don’t have to reinvent the wheel to be an investor who makes money. Buying companies that consistently do well is a good concept. It is advisable not to take tips from your neighbor unless, he is qualified. Most likely your neighbor is just repeating something he heard from someone else.

Yes, stories change. Do your own research, or use a professional. Remember, the masses are usually wrong. By the same token, when everyone says the market is surely headed much higher brace yourself for a correction. Pay attention to extreme investor psychological levels in both directions as they usually mark both bottoms and tops.