Do's and Don'ts

1. Always follow the trend of the market. Never go against it. If the news tells us that tech stocks for example are doing fairly well then we should long tech stocks that day and not short it no matter how overbought it is. Remember news usually last a day or so. We follow hype and trend then we can get rid of it as day end.

Note* Some of the time hype and trend can ignore technicals.

2. One of my favorite plays are earnings hype. If news are hyping a stock about their blowout earnings usually we should ride it that day from the hype (pump and dump). Usually sell it before the actual earnings come out. However, if you feel confident about it then I suggest you hold some of the position.
Examples (BIDU, AAPL, AMZN, MSFT) These are all earnings hype. All these stocks are trending up as their earnings were being reported that same evening. AMZN is a good example of why we need to release some of our holdings before earnings.

3. Basic rule NEVER and EVER try to catch a "falling knife". This means that when stock price is falling don't try to pinpoint the bottom unless you really know what you are doing. Some of the time I don't even know when it will bottom. It is also one of the most psychological things for inexperience traders to do. Most of the time we feel like wow this stock is "pretty cheap" at this price lets "hope" it will recover. No, there are many reasons why it's one of the biggest mistake. Some stocks do not recover at all, others recover but you will never know when. It is Vice-versa with shorts. Hope is useful in life but not in the market.