principles that every investor should follow.(part)
This post will make up 80% of your success!
Although, most people will scroll through it , I'll just keep writing my posts🤷🏻‍♂️.
đź“ŤPrinciple 1. Avoid losses. Don't speculate.
Only invest in what you know best, otherwise you will have one loss after another.
If you have lost 80% of the value of your portfolio, you need to earn 400% to rebuild it.
And that requires the most expensive resource of all – time.
đź“ŤPrinciple 2. Rational thinking over emotions.
Create an algorithm of actions in various market situations – so that when such situations occur, you don't make any emotional decisions.
đź“ŤPrinciple 3: Keep an open mind.
Do not rely on any financial advice, do your own research and be open to new opportunities.
đź“ŤPrinciple 4: Always stay invested. Timing isn't free.
An effective investor always stays invested – money must work all the time.
Missing only the top 20 days in 20 years (one day a year) instead of 5.6% the AR of the portfolio can become negative.
Source – JP Morgan, S&P 500 1999-2018
13 comments