25 Golden Rules of Investing

25 Golden Rules of Investing

Rule 1: Bulls, Bears Make Money, Pigs Get Slaughtered

It is important for both investors and traders to know when to buy and sell and make money from stock market.

Rule 2: It Is Good To Pay Taxes

Stop to afraid from paying your taxes and start fearing the loss.

Rule 3: Don't Buy All At Once

Warren Buffet said that "Do not put all eggs in one basket".

Rule 4: Buy Broken Stocks, Not Broken Companies

There is no refund in trading, make your own research and buy undervalued stocks, not the broken companies.

Rule 5: Diversify Your Portfolio To Manage Risk

Make a diversification of your stock portfolio so that you can control the risk.

Rule 6: Do Your Stock Homework

Before you purchase a certain stock, make sure that you already have a research in that particular stock.

Rule 7: No One Makes Money By Panicking

You need to control your emotion when trading.

Rule 8: Buy Blue-Chip Companies

Buy the giant companies because it gives you a peace of mind when you do investing.

Rule 9: Defend Few Stocks But Not All

When you trade a stock, pick your best and favorite stock and focus on that stock. 

Rule 10: Bad Buys Would Not Become Takeovers

It is great to focus on fundamentals on a particular stock.

Rule 11: Do Not Own Too Many Stocks

It is better to focus on a few stocks rather than many stocks because it gives peace of mind.

Rule 12: Cash Is For The Gainers

If you like the market, invest it now, and make money from it.

Rule 13: Control Your Emotion

It is very significant for the traders to control their emotions to avoid wrong decisions.

Rule 14: Expect, Do Not Afraid To Correct

Sometimes you got a mistakes, expect it and learn from your mistake, and try to correct it.

Rule 15: Do Not Forget Bonds.

Stocks are great way to invest, but do not forget to invest in bonds too.

Rule 16: Never Support The Losers With Winners

Do not sell the good stock in order to buy a bad stocks.

Rule 17: Check Hope At Your Door

Hope is an emotion. Trading is not a game of emotion.

Rule 18: Be Like Bamboo Means Be Flexible

Be prepare the shift of the market. Sometimes the market goes up or down. It's dynamic.

Rules 19: When Chief Executive Surrender, So Should You Too

When the Chief Officers of the company resign, it's an indicator that is something is wrong.

Rule 20: Giving Up On Value Is A Sin

Be patient when you invest in the market. Price is what you pay. Value is what you get.

Rule 21: Watch News On A Television

Always watch news and be updated what is happening in the market.

Rule 22: Wait At Least 30 Days After Preannouncement

Wait until 30 days after the preannouncement to figure out if it's necessary to buy a stock.

Rule 23: Beware Of Stock Market Hype

Beware of stock market hype, sometimes the market downs drastically.

Rule 24: Explain Your Stock Picks

Make sure that you know your stock picks very well so that you can explain it to others.

Rule 25: There Is Always A Bull Market

In every bearish market, there is always a market for some stocks, try to find it. Research it. Invest it.


Source: TheStreet.com


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