There are seven investing rules that have stood the test of time.
They’re not unique or new, if you follow them, you succeed, if you don’t, you don’t.
1. Sell losers fast; let winners run: It seems simple, but the average investor sells his winners and keeps his losers, hoping that they’ll come back.
2. Buy cheap and sell expensive: Buying low and selling high is really another name for re-balancing your portfolio.
3. This time is never different: History may not repeat exactly, but it surely rhymes awfully well.
4. Be patient: Being patient is not only a virtue, it’s a good way to keep yourself out of trouble.
5. Turn off the television: The only thing you achieve by constantly watching the television is increasing your blood pressure.
6. Risk is not equal to your return: Taking on risk in an investment is not equivalent to how much money you’ll make. It only relates to the permanent loss of capital when you’re wrong.
7. Go against the herd: When everyone agrees on the direction of the market, usually something else happens.
As an investor, it’s your job to step away from your emotions and look objectively at the market. To learn more, call us or visit our website today.