• Investing in equity markets is a long-term process.Investment image by Svitlana Boldyryeva from Fotolia.com
  
  Investing in the stock market requires individual investors to have a plan for their portfolio. Setting investment expectations and goals is the cornerstone to any successful investment strategy.
  
  

Pick a Strategy and Stick to It

• The website Investopedia says, "There are many ways to be successful and no one strategy is better than the other." Once you find a style you are comfortable with, stick to it and become an expert in that investment style.
  
  

Focus on the Future

• One of the most difficult parts of investing is "trying to make informed decisions based on things that haven't happened yet," says Investopedia. Investing in the stock market is a long -erm commitment.
  
  

Limit Each Position to a Maximum of 10 Percent.

• The website GorillaTrades says, "Invest no more than 5 to 10 percent of your capital in any one stock."
  
  

Know Your Risk Tolerance

• Investing in the stock market can be financially rewarding. However if you cannot sleep at night because you are worrying about your stock portfolio you are probably taking on too much risk. Spend some time with your adviser to determine your risk tolerance.
  
  

Diversify

• By investing in a number of different companies in different segments of the market you will minimize your risk if one segment of the market starts to decline.
  
  

Don't Expect Too Much

• "Many first-time investors expect 300 to 400 percent returns in a short time," according to investment website Prime-Targeting. These expectations are unrealistic.
  
  

Set a Profit Goal

• For each stock in your portfolio, set a profit goal where you will want to either sell all or a portion of your investment. Selling all of your position locks in that profit and provides you with capital to invest elsewhere. If you sell a portion of the position, the remaining investment may continue to appreciate.
  
  

Limit Your Losses

• Investopedia says while it is important not to underestimate good stocks, it is equally important to be realistic about investments that perform badly. Set a loss allowance you are willing to take and stick to it. If you set a loss allowance of 10 percent, then that is the most you will ever lose on one position.
  
  

Ignore "Hot Tips"

• Investing is a disciplined approach to selecting companies whose stock price will appreciate in value. Relying on a "hot tip" is a type of "gambling" says website Investopedia.
  
  

Review and Rebalance

• While investing in the stock market is a long-term process, it doesn't mean you ignore your portfolio. Review your portfolio on a quarterly or semi-annual basis to see how your investments are performing and where you need to make changes.