1.When you choose a financial advisor, look at the scalp. If there are any gray hairs, it means they've been around long enough to see financial cycles. If you're really lucky, they've already screwed up a few times at someone else's expense so they know the score.

2. Beware of assets. If it doesn't earn profits this year, or next year, it's no asset. Doesn't matter whether it's tangible or intangible. The only difference between a brand name and a plant is the residual value of the real estate on which the plant is built, and maybe the building as well. Otherwise, assets are only worth what they earn and if they're not earning now, they'll soon be written down to zero. Want evidence of that? Think back to the tech boom.

3.When there's a takeover, don't be fooled by the propaganda and hype. Check the numbers and remember, the first takeover is rarely the last. Also remember that in any takeover, cash is king. The folding stuff is simple and uncomplicated. You can count it, bank it or reinvest it. But scrip is messier because you can only do one thing: analyze the raider's accounts and assess whether the shares represent a good investment and whether you would invest in the company at that price.

4.Cash flow is your friend. If a company's stated revenue in the profit and loss account is higher than the cash flow, it probably means the company is front-loading the revenues, declaring them in their entirety before all the money comes in through the door.

5. A rising market makes any prospectus a good prospectus. When the market is running hot and every dog gets listed at a premium, applying traditional financial analysis to a prospectus is just a waste of energy.

6.Don't be loyal to stocks. Save that for your football team.

7.Watch out for any company that capitalizes enough of its expenses to declare a monster profit alongside a strong balance sheet: it's usually broke.

8.Independent directors might be good corporate governance practice. But usually, they are next to useless when dealing with strong management.

9. Directors who charge consultancy fees, or commissions, are usually out to enrich themselves, not shareholders. Remember, the only reason you have a company director is for him or her to give the board their best advice and help it make good decisions that are in shareholders' interests. For this, they get paid massive directors' fees. If they're collecting commissions on top of that, they're double dipping.

10.Buy in gloom, sell in boom. And remember, keep an eye on great companies when they make mistakes. If a solid company with a sound business, good brand name, and solid cash flow screws up, it will get hammered by the market. That can create some excellent investment opportunities.

11.All booms go bust.

12. Follow the leaders.

13.Never ever gamble in the stock market. If you want to gamble, go to the casino or race track.

14.Diversification is they key to protecting your money. To minimize the risk of loss, spread your money around, not only between shares, fixed interest and property, but also between countries.

15.The pain of losing is greater than the pleasure of winning. That's why you should always start your examination of an investment by examining the potential downside. It all boils down to risk/reward. That's the difference between a risk worth taking and a sucker's bet.