Pinging this for later.
PFL...thanks for posting.
Were the rules supposed to repeat? We have duplicates.
“Short Selling Protects Wealth” Not so fast...
Investopedia
Short selling involves amplified risk. When an investor buys a stock (or goes long), they stand to lose only the money that they have invested. Thus, if the investor bought one TSLA share at $625, the maximum they could lose is $625 because the stock cannot drop to less than $0. In other words, the maximum value that any stock can fall to is $0.
However, when an investor short sells, they can theoretically lose an infinite amount of money because a stock’s price can keep rising forever. As in the example above, if an investor had a short position in TSLA (or short sold it), and the price rose to $2,000 before the investor exited, the investor would lose $1,325 per share.
Paraphrased my tagline
Keep that in mind in formulating any trading strategy.
Rule 1: Get rich slowly. Spend less than you make, put 10 percent or more into investments
Rule 2 Dollar cost average into market index funds. The market goes up given enough time; paying fees is a sucker’s game
Rule 3: any time frame less than 20 years is a fool’s game, just go throw your money on the craps table instead. The Market *WILL* be higher in 2041.
Those are all I’ve needed.
All the rest is BS to churn and burn the money of people who think there’s an easier way; people win the lotto, too but that doesn’t mean it’s a viable strategy.
If someone needs 50 laws of investing to guide you, he's made the process overly complex and is probably just selling a book.
I have no more than 8-10 rules of investing. Some of them are just meticulously detailed rules that relate to my general approach to investing and wouldn't necessarily apply to every investor.
Here's an example of a rule I use that I learned over time. It may not apply to everyone but I did see the wisdom of it after seeing how it applies to my own situation: When investing in mutual funds, don't reinvest the dividends or capital gains.
This might get criticized by financial advisors, but my reasons for this are two-fold:
1. If a mutual fund pays a dividend or capital gain, it's taxable as income (dividends), a short-term capital gain, or a long-term capital gain. If I have to pay taxes on the dividend or capital gain, I want to pay it out of the proceeds of these transactions.
2. I meticulously invest in a set of mutual funds on a scheduled dollar-cost average basis. If I'm investing $100/month in a mutual fund and that fund pays me a dividend of $500 at the end of the year, reinvesting it turns my $100/month schedule into a $600/month asset purchase for just one month. That just complicates things by throwing the schedule and my asset allocation into disarray, which requires a potential adjustment in the monthly schedule after that.
Coach Bobby Finstock’s three rules of life:
1 Never get less than 12 hours of sleep a night
2 Never play cards with anyone who’s first name is a city
3 Never go near a woman with a tattoo of a dagger anywhere on her body
anyone interested in investment strategies to hedge against inflation?
A. I’m not going to be a landlord: too much hassle
B. I’ve already got enough precious metals, so don’t need more.
C. I’ve already invested in a ton of RDSB when it was priced at give-away prices March a year ago, so don’t need more petro ...
D. I’ve got plenty of guns and ammo, so don’t need more ...
I’m more interested in ETFs in the following sectors:
A. Agriculture: equipment, fertilizers, chemicals, and big processors like ConAgra and Archer-Daniels-Midlands (price of food is fixing to go through the roof due to massive cost increases in the inputs: who’s going to profit the most?
B. Single-family housing REITs: housing is going to go through the roof because of explosion in cost of materials, resulting in concomitant price increases in existing housing stocks ... not interested in apartment, commercial, or industrial REITs due to economic uncertainty ...
C. Building materials ETFs: producers, wholesalers, retailers, appliance makers, lumber, etc.
.
Rule 1: Buy stock that is going up.
Rule 2: Sell stock after making profit and the stock is going down.
Or buy low, sell high
bfl
I beg to differ.
The NUMBER ONE rule of winning at investing is to get politically connected and get insider trading from political friends. (BUT WAIT. That’s illegal.....right?)
Two. Don’t take investing advice from poor people. I had one guy telling me to buy a certain crypto. “buy buy buy” he said. “It’s going to the moon just like bitcoin and etherium and dog coin.” It lost 50% of it’s “value” the next morning.
I have never lost buying new software or equipment for my business. Never.