The Average Investor’s Commandments
- Think Long-Term. It’s very rare for a sudden move in price to mean very much Things will balance out so be patient.
- Always keep a few months expenses around in case something happens and invest the rest.
- 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.
- Do Your Own Research.
- Set It and Forget It.
- Consistently Contribute.
- Be Fearful When Others Are Greedy.When everyone is a winner you should be concerned.
- 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.
- 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.
- Diversify. If it can fail, it will fail. Plan ahead for failure.
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