to investing - funtech€¦ · top 50 rules top 50 rules to investing. an attempt at making a quick...
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TOP 50 RULESTOP 50 RULES
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INVESTINGINVESTING
An attempt at making aquick buck usually leads tolosing much of that buck.
#1
If stocks in general don'tseem cheap, stand aside.
#2
Buy and hold doesn'tALWAYS work.
#3
Never throw good moneyafter bad (don't buy moreof a loser).
#4
Cut your losers, and letyour winners ride.
#5
If the investment soundstoo good to be true, it is.
#6
Don't fight "the tape" (thetrend.)
#7
Don't fight the Fed (interestrates).
#8
Most stocks that fall under$5 rarely see $10 again.
#9
The best hot tip: there isno such thing as a hot tip.
#10
Don't fall in love with yourstock; it won't fall in lovewith you.
#11
Don't have more than 3%AT RISK in any oneposition.
#12
The trend is your frienduntil the end.
#13
Trading options often leadsto a quick trip to thepoorhouse.
#14
Bear-market rallies areoften violent; giving theillusion the bull is back
#15
Low-priced stocks don'tdouble any faster thanhigh-priced ones.
#16
Valuations don't matter inthe short run.
#17
When a stock hits a newhigh, it's not time to sell.Something is going right
#18
Have a rose gardenportfolio (don't trim yourroses while your weedsfester).
#19
It takes courage to be a pig(don't settle for taking 10%profits).
#20
Not selling a stock for again, simply becauseyou're afraid of the taxes,is a bad idea.
#21
Avoid limited upside,unlimited downsideinvestments.
#22
When all you're left with ishope, get out.
#23
Don't keep losing moneyjust to "prove you areright." Nobody cares.
#24
Forecasts are useless.#25
Have patience and stickwith your discipline.
#26
When it's time to act,don't hesitate.
#27
Expert investors careabout risk, noviceinvestors shop for returns.
#28
Don't lose money.#29
You can learn more fromyour bad moves than yourgood.
#30
A rising tide raises allships, and vice versa, soassess the tide, not theships.
#31
Stocks fall more than youthink and rise higher thanyou can possibly imagine.
#32
Very few people havehad great success shortselling, even in bearmarkets.
#33
You can't know everythingabout everything.
#34
Since you can't knoweverything, seek outspecialists who know theirareas.
#35
If a company's sales areshrinking, the businessisn't growing anymore.
#36
Real estate cycles are notthe same as stock marketcycles.
#37
Investing in what's popularnever ends up making youany money.
#38
Know your investmentedge, and don't stray toofar from it.
#39
Bear markets begin ingood times. Bull marketsbegin in bad times.
#40
Bear markets begin in good times. Bull markets begin in bad times.
#40
Buy value - stocks thatare priced less than theirunderlying assets areworth.
#41
Neglected sectors oftenturn out to offer goodvalues.
#42
There's usually only onereason corporate insidersbuy stock.
#43
Don't miss a good one bybeing too concerned withthe exact price you pay.
#44
Avoid popular stocks, fadindustries and newventures.
#45
Buy shares in businessesyou understand.
#46
Try to buy a stock when ithas few friends.
#47
Be patient: don't be rattledby fluctuations.
#48
Mutual funds under-performthe averages over the longrun. Buy index fundsinstead.
#49
If you don't understand theinvestment, don't invest.
#50
Millions of investors break these rulesevery day.
Most of these investors are today tryingto get back to where they were...
Hence Rule No - 51.
The people who suffer the worst lossesare those who over-reach.
Presentation by. Shaji Hakeem Source:
#51