Rules of Investing

Investing is a relatively easy process when you think of it. If you follow simple rules and invest in valued companies overtime your money will appreciate. To make it easier for you I have outlined some critical points to consider when entering the field of investing:

Top 25 Investing Rules

1.    Buy Damaged Stocks, not Damaged Companies

2.    Buy best of Breed, Quality Companies within a sector

3.    Do your Homework, Research the Company.

4.    Make sure you know what you are investing in and don’t jump in blind-sighted on other people’s opinions

5.    Buy stocks with at least 4 analysts watching it, Sufficient analyst coverage is neccesary to create investor interest

6.    Buy stocks with above 100,000 daily volume, Above 1 million is the best as you want investor interest

7.    Don’t buy into momentum, wait for pull back. Especially important in Bearish market

8.    Diversify, Diversify, Diversify

9.    A strong diversified portfolio holds 10-20 stock positions

10. Always leave 5-10% of your portfolio in cash. The reasoning is that you never want to miss the next great buy.

11. There is always a bull market somewhere and there is always money to be made in the markets.

12. Never shy down and believe that when markets are declining money can be made.

13. Short stocks if you have no faith in markets and buy when you do as you will always make money implementing that philosophy.


14  Don’t invest what you can’t afford to lose, remember nothing in life is a sure thing

15. Don’t become an emotional train wreck because your stocks are down.

16. Don’t invest in Mutual Funds, the fees will cost you

17. Looking to diversify but don’t have a lot of funds, Check out ETFS!!!

18.  Set realistic goals, don’t expect the world

19. Learn from your mistakes, embrace your gains.

20. Don’t check your stock positions everyday, once a month MAX!!!

21. Add money to your portfolio on an annual basic to accumulate true wealth

22. If your young, take risk you have time to make it up

23. If your close to retirement don’t risk your life for a vacation

24.  Start investing early, Time is the Value of Money

25. Don’t get scared out of investing because you lost some money

Now move onto the next section which will discuss Fundamental Analysis and the Qualitative Factors Involved