Introduction
Below is a list of ten investing rules for retail investors interested in investing in stocks. What this really is is a codification of basic investing rules for myself. They aren’t very complicated; in fact they’re really straightforward. I need to write them down so I don’t stray from them.
Because every time I do, I lose money. It’s as simple as that.
Let me start by saying I am probably not the most qualified person to write this. I do have a background in finance (many moons ago), I do have an MBA (again, many moons) and I do invest in the stock markets. My investment return has been pretty good (I’m too shy to share actual numbers) and I’ve had the good fortune of holding some of the best multi-bagger shares over the past decade (DPZ, RNG, ROKU, TSLA) from when they were tiny companies just starting out. BUT…I don’t do this full time, I’ve made many mistakes, and I did start from a pretty tiny base, so please take this for what it is.
The Ten Rules I Invest By
Below are the rules:
- Invest, don’t trade
- Buy what you use
- Buy Growth over Value
- Ride the stock
- Take (some) money off the table
- Buy on dips
- Just say NO to options
- You can’t time the market
- Journal your thoughts / trades
- Don’t be greedy; do be patient