The Average Investor’s Commandments - Deepstash

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The Average Investor’s Commandments

  1. Think Long-Term. It’s very rare for a sudden move in price to mean very much Things will balance out so be patient.
  2. Always keep a few months expenses around in case something happens and invest the rest.
  3.  Buy What You Believe In. If you do not know or understand what you’re buying, don’t buy it. Invest in something that you personally believe in.
  4. Do Your Own Research.
  5. Set It and Forget It.
  6. Consistently Contribute.
  7. Be Fearful When Others Are Greedy.When everyone is a winner you should be concerned.
  8. Be Greedy When Others Are Fearful.The best time to buy is when the world is on fire, not just the typical knee-jerk reaction of the media.
  9. Find and Remove Frivolous Fees. When the stakes are highest, so are the fees. Even a 1% fee can become significant over the long-term.
  10. Diversify. If it can fail, it will fail. Plan ahead for failure.

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Banks don’t like to give away their money. That mindset is reflected in the interest rates of checking and savings accounts of 0,5% and 0.9% avg. annual interest respectively.

When you deposit your money in the bank, the bank turns around and invests that money at 7% a year or more. ...

  • does not try and time the market – buy low and sell high,
  • also does not try to beat the market, 
  • just try and achieve average returns,
  • realises that it does not involve a lot of work or stress and locks in a nice healthy return over the long term.
The goal...

... is the trading of your money today for a lot more money in the future. It is a high yield over the long term.

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Investment explained

An investment is a gamble: instead of the security of guaranteed returns, you're taking a risk with your money. 

You can invest in Shares, Bonds, Funds, Government bonds (gilts), UK property market or even Farmland, Vintage cars, Wine, Fledgling technology, firms or art.

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Investment Tips

  • Set Your Objectives. (setting long-term objectives can be of great benefit.)
  • Level of Risk. (The level of risk associated with the investment option you choose must be carefully analysed before you put your money into something.)
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Investing is a way to set aside money while you are busy with life and have that money work for you so that you can fully reap the rewards of your labor in the future. Investing is a means to a happier ending.

The goal of investing is to put your money to work in one or more types of invest...

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