10 Commandments of Stock Investment
Do not pay ridiculously high prices for stocks under
any circumstances because Overvalued companies always
fall back to earth!
Always pay close attention to charts when making
decisions-a picture can be worth more than a thousand words!
Dont ever get caught up in the latest stock market fad.
ALL every fad end and they ALL end the same way-badly!
Do not follow the crowd- when it comes to
investment, the crowd is inevitably ALWAYS wrong!
Apply caution when investing with borrowed money.
Borrowing must be repaid in full whereas investments can fluctuate in value!
Carefully consider a companys downside risk
before investing. Preservation of capital is just as important
as trying to make a profit.
Always be patient when investing. Waiting for the
right opportunity to invest and exercising patience with
investments is critical in the stockmarket.
Always be disciplined and cut losses when
necessary. Hoping the market will bounce back often leads to
ruin.
Always buy straw hats in winter- What the stock
Market shuns is often embraced tomorrow!
Be honest with thyself. Admitting investing
Mistakes is imperative in Financial Markets.