The Time Tested Rules of Investing
- 4 Comment
| 1. Be patient, never panic | 2. Be nervous, keep a close watch |
| 3. Be flexible, change courses quickly | 4. Be steadfast, have faith in your ideas |
| 5. Never sell too soon | 6. It’s never too soon to sell |
| 7. Let your profits run | 8. Cut your loses, and take profits as soon as you can |
| 9. Invest for the long term, the short term is unpredictable | 10. Invest for the short term, the long term is unpredictable |
| 11. Never risk what you can’t afford to lose | 12. A big risk is the key to a big gain. Play for meaningful stakes |
| 13. Buy when the experts are optimistic | 14. Sell when the experts are optimistic |
| 15. Buy when prices are low and there’s nowhere to go but up | 16. Buy when prices are high; things will continue to go up |
| 17. Set specific investment goals | 18. Don’t limit yourself to artificial yardsticks |
| 19. Study as much as you can; the ignorant investor is a sure loser | 20. Study nothing, since a little knowledge is a dangerous thing |
| 21. If things aren’t clear, do nothing | 22. Nothing is more suicidal than a rational investment policy in an irrational world |
As one who has done a lot of reading on investing, I think Rothchild’s list pretty much sums up the differences in opinions that exist out there. The key thing I take away from this is that there is no right answer.
That being said, I believe that a consistent strategy is the most important investing concept;
but then again an inconsistent strategy may be what is important.
4 Comments on this post
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Donna said:
I find it very difficult to just make decisions precisely because all the experts out there have so much different advice. But indecision is very costly — my failure to move money from a high cost brokerage for my IRA’s cost me when I finally did decide to sell off some underperforming stocks and buy into a stock that looks poised for the future. I knew I should have transferred those assets, I just couldn’t make up my mind about doing it. I could probably go on and on. But the advice does not seem to help. And lately, it’s like Alice in wonderland: good news is bad and bad news is good. What’s up with the market?
Donna
September 26th, 2006 at 7:15 pm
Carnival of Investing…
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