12 Timeless Investment Rules

12 Timeless Rules of Investing: Guidelines Every Investor Should Embrace, But Few Actually Do

This is an interesting article..... enjoy. 

1. An attempt at making a quick buck often leads to losing much of that buck.

• The people who suffer the worst losses are those who over-reach.
• If the investment sounds too good to be true, it is.
• The best hot tip I've found is "there is no such thing as a hot tip."

2. Don't let a small loss become large.

• Don't keep losing money just to "prove you are right."
• Never throw good money after bad (don't buy more of a loser).
• When all you're left with is hope, get out.

3. Cut your losers; let your winners ride.

• Avoid limited-upside, unlimited-downside investments.
• Don't fall in love with your investment; it won't fall in love with you.

4. A rising tide raises all ships, and vice versa. So assess the tide, not the ships.

• Fighting the prevailing "trend" is generally a recipe for disaster.
• Stocks will fall more than you think and rise higher than you can imagine.
• In the short run, values don't matter.

You can download the rest of the rules here. Happy investing.