Every year I make the same resolutions about dieting and exercise. Every year they last for a few weeks and old habits easily, seductively, come back. So I'll do those again this year. But I'll also add the following resolutions, ones that will help me not repeat mistakes that cost dearly in the last two years.

1. I will buy more steak, less sizzle. No one likes a good story better than I. Tell me a company has a cure for cancer, has the best software to take on Microsoft (MSFT) or can make teeth white in five minutes, and I'll listen very hard, most likely invest. Being an optimist, I want to believe all these things are true, that people do have great ideas, that businesses will thrive. But they don't. Most of the time. Not because the management is crooked (sometimes it is), but because business is extremely competitive and getting new products to market, then making a profit, is close to impossible. That's because big, established firms in the same industry have either tried the same idea or passed on it because it doesn't work. This year, I'm buying more well-capitalized companies with proven histories of profits, ones that are growing revenues and profits in a very tough economy. More steak, less sizzle.

Ted Allrich is the founder of The Online Investor and author of the just released book: Comfort Zone Investing: Build Wealth And Sleep Well At Night. In this weekly column, he'll offer advice to investors who are just getting started.

Rule no. 1: Always buy stocks with earnings. Earnings are what investors get to keep. The more earnings a stock has, the higher the price will go. Don't buy hope or future earnings. Buy earnings that are happening now, especially the ones that are increasing every year.

Rule no. 2: Always do your research. Don't buy a tip just because a talking (or screaming) head says a stock is good. It might be good for them but not for you. Since no one will tell you when to sell, if you don't do your homework, you can't know when the stock is overvalued and should be sold. It may be overvalued when you buy it. You won't know if you don't do your homework. And you won't know if it's the right type of stock for you. For example, if you're looking for a dividend and the stock is in the early stages of biotech, then it's definitely not for you. Do your research well and know what you own. Then you'll know when a stock is cheap or rich, when to buy or when to sell.

Rule no. 3: Always follow your stocks. You can't just buy and hold anymore. While you should be a reluctant seller because you've done your research and bought strong stocks, things change, things like management, competitive environment, economic conditions, etc. Nothing stays the same, ever. Sometimes the evolution works in your favor. Sometimes it doesn't. The best companies evolve ahead of change. Look at Apple, Inc. (NASDAQ:AAPL) as an example of a company that is changing dramatically, even its the name (now it's just Apple, Inc., not Apple Computer). Don't sit and hope for the best. Follow your stocks and the financial news. Use your TV computer, newspapers, magazines. News is everywhere, not in one medium.