First, do take note that these rules are not created by me (for obvious reason since I am a newbie investor), I chanced upon a whole list of 50 simple rules from fool.sg and just hand-pick 10 of them to be shared over here.
For the complete list of the rules, check out the fool.sg blog post here. Thanks to the folks at fool.sg as I can relate to most of these rules.
Now, here are my favourites among them. In fact, many of them are applicable to life (and not only investing) in general :
1. Only invest in products and companies you can explain to a six-year old
2. Read more history and fewer forecasts.
3. Every five to seven years, people forget that recessions occur every five to seven years.
4. When in doubt, choose the investment with the lowest fee
5. You shouldn’t feel strongly about any investment you haven’t spent at least a week thinking about.
6. Change your mind as often as the facts change.
7. Sleep on every investment decision for a week, then run it by a trusted friend before acting.
8. You can probably afford not to be a great investor — you probably can’t afford to be a bad one.
9. Assume the worst, hope for the best, accept reality.
10. ”Invest in what you know” is dangerously simplified.
Do you have your own rules to add? Feel free to drop me a line or two in the comment section.
Cheers!
No comments:
Post a Comment