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10 Investing Rules Everyone Should Know
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1. Buy and Hold
Buy an investment and hold it for the long term.
In order to win, you have to be patient and wait for the right opportunity.
"If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes" @WarrenBuffett
Buy an investment and hold it for the long term.
In order to win, you have to be patient and wait for the right opportunity.
"If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes" @WarrenBuffett
2. Know When to Let Go
Realize when you're wrong and cut your losses early.
Know when you're right and hold on to your investments for the long term.
"I am no better than the next trader, just quicker at realizing my losses and moving on to the next trade" @GeorgeSoros
Realize when you're wrong and cut your losses early.
Know when you're right and hold on to your investments for the long term.
"I am no better than the next trader, just quicker at realizing my losses and moving on to the next trade" @GeorgeSoros
3. Anyone can Invest
You don't have to be a genius to invest.
Research, be patient, and look for buying opportunities.
"A blindfolded monkey throwing darts... could select a portfolio that would do just as well as one carefully selected by experts" - Burton Malkiel
You don't have to be a genius to invest.
Research, be patient, and look for buying opportunities.
"A blindfolded monkey throwing darts... could select a portfolio that would do just as well as one carefully selected by experts" - Burton Malkiel
4. Control your Emotions
Control your emotions before they control you.
Fear causes investors to sell at market bottoms.
Greed causes investors to buy at market highs.
"In the world of money and investing, you must learn to control your emotions" @theRealKiyosaki
Control your emotions before they control you.
Fear causes investors to sell at market bottoms.
Greed causes investors to buy at market highs.
"In the world of money and investing, you must learn to control your emotions" @theRealKiyosaki
5. Diversify
You can't predict the future.
Diversify your investments to reduce losses and take advantage of gains.
"I think that the first thing is you should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold" @RayDalio
You can't predict the future.
Diversify your investments to reduce losses and take advantage of gains.
"I think that the first thing is you should have a strategic asset allocation mix that assumes that you don't know what the future is going to hold" @RayDalio
6. Do your Research
Don't just invest in a stock because of a "tip."
Do your research on the company first.
"Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets" - Peter Lynch
Don't just invest in a stock because of a "tip."
Do your research on the company first.
"Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets" - Peter Lynch
7. Losses are Part of the Game
You can't invest in something and think you're only going to win.
Expect losses to happen, but that doesn't mean you have to abandon your plan.
"Prepare for losses. Losses are part and parcel of stock market investor life" - Rakesh Jhunjhunwala
You can't invest in something and think you're only going to win.
Expect losses to happen, but that doesn't mean you have to abandon your plan.
"Prepare for losses. Losses are part and parcel of stock market investor life" - Rakesh Jhunjhunwala
8. Read
If you want to become an investor, but don't know how or where to start, then begin reading.
Best investment books:
- Beating the Street
- One up on Wall Street
- A Random Walk Down Wall Street
"You can learn investing by reading books" @BillAckman
If you want to become an investor, but don't know how or where to start, then begin reading.
Best investment books:
- Beating the Street
- One up on Wall Street
- A Random Walk Down Wall Street
"You can learn investing by reading books" @BillAckman
9. Invest in Value
Stocks are shares of actual businesses.
If you want to be successful, you first have to understand the business whose stock you plan to buy.
"Don't confuse luck with skills when judging others, and especially when judging yourself" @Carl_C_Icahn
Stocks are shares of actual businesses.
If you want to be successful, you first have to understand the business whose stock you plan to buy.
"Don't confuse luck with skills when judging others, and especially when judging yourself" @Carl_C_Icahn
10. Focus is Key
Remember why you are investing.
Stick to your plan and don't allow noise to distract your focus.
If there's a "hot tip," don't sacrifice your current strategy unless you do your research.
"Keep it simple and remember what you set out to do" - Charlie Munger
Remember why you are investing.
Stick to your plan and don't allow noise to distract your focus.
If there's a "hot tip," don't sacrifice your current strategy unless you do your research.
"Keep it simple and remember what you set out to do" - Charlie Munger
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Sign up for Fiona's mail list today.
Get free access to:
- The latest financial tips
- Wealth building strategies
- Step-by-step investing guides
Learn more
https://themillennialmoneywoman.com/email-landing-page/
