Step 1: Keep your computer clean and protected
Before we begin talking about strong passwords we must make sure that our computer is protected from spyware (that could leak your passwords) and unauthorised remote access. This is part and parcel of everyday computing but is especially pertinent to keeping your passwords secure from theft. Most hacking attacks happen by stealing your account password through the installation of spyware on the computer. You must install and maintain up-to-date (and legitimate) anti-virus and firewall software. You should also ensure that your operating system and all applications on your computer have the latest updates. These steps are the precursor to all secure computer operations.
Exercises: Protect your computer from malware and unauthorised remote access by installing and configuring an anti-virus and firewall from https://securityinabox.org/
Step 2: Always be vigilant and cautious
The Internet is rife with cyber criminals creating scams that trick you to reveal your password or inadvertently install a piece of malware that will leak them (especially if you skipped Step 1 above). You must be extra vigilant when clicking on links sent to you in an email or chat message. Avoid installing pirated software and browsing to websites whose identity, authenticity you cannot be sure of. Don't use Internet Explorer to browse the Web, run Firefox with the No-Script extension or Chrome with extensions that forbid webpages to execute code on your computer.
Media: Read this account from a Wired journalist on how hackers compromised his entire digital life, and how he managed to restore it. Lots of good tips and advice.
Exercise: Firefox users install the http://noscript.net/ extension; Chrome users install NotScript extension.