21 Golden Rules for Investors.
1.If you keep worrying too much about your stocks every day, buy a damn mutual fund
2.Don’t try to be the next warren buffet, be your own investor
3.P/E ratio is not the only indicator
4.Don’t put all your eggs in one basket, diversify.
5.Don’t take your losses home.
6.Learn from your bad investments.
7.Read a prestigious newspaper everyday, it will give you the chance to pick somebody’s brain for a moment- it will also make you more interesting to talk to.
8.Always keep some cash around.
9.Don’t focus all your energy trying to beat the market.
10.Stick to the numbers or the market will stick it to you.
11.Stay disciplined over the long haul.
12.You don’t have to hold stocks forever to be a long-term investor.
13.Always have a backup plan.
14.Prepare for the unexpected, always have some hedge around.
15.Turn off the noise, if everybody followed what they heard on the news then everybody would be rich.
16.Always remember to buy high and sell low – this refers to “buy when others are fearful and sell when others are greedy.”
17.Have a strategy before you buy your damn stocks.
18.Nobody likes a bragger.
19.You cannot have a love affair with a stock because the stock will not love you back.
20.Don’t speculate too much keep it under 20% of your portfolio
21.If you think investing is gambling, You will probably do better in Vegas than in the stock market.
“Rule #1 Don’t lose money
Rule #2 never forget rule #1″ Warren Buffet.
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