Twelve Timeless Rules of Investing

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 we’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. For example, a profitable homebuilding company will trade down if homebuilding stocks, as a group, are trending lower. In the short run, examine an industry before you buy one of the companies within it.

5. When a stock hits a new high, it’s not time to sell … something is going right. Likewise, when a stock hits a new low, it’s not time to buy … something is wrong.

6. Buy and hold doesn’t ALWAYS work. If stocks don’t seem cheap, stand aside.

7. Bear markets begin in good times. Bull markets begin in bad times.

8. If you don’t understand the investment, don’t buy it. Don’t be wooed. Either make an effort to understand it or say “no, thanks.” You can’t know everything, so don’t stray far from what you know.

9. Buy value and sell hysteria. Paying less than the underlying asset’s value is a proven successful strategy. Buying overvalued stock has proven to underperform the market. Neglected sectors often offer good values. The “popular” sectors are often overvalued.

10. Investing in what’s popular never ends up making you any money. Avoid popular stocks, fad industries, and new ventures. Buy an investment when it has few friends.

11. When it’s time to act, don’t hesitate. Once you’re in, be patient, and don’t be rattled by fluctuations. Stick with your plan … but when you make a mistake, don’t hesitate. Learn more from your bad moves than your good ones.

12. Expert investors care about risk; novice investors shop for returns. If you focus on the risks, the returns will eventually come for you. If you focus on the returns, the risks will eventually come for you.

Excerpted from Investment U’s Profit from Uranium:

How the “Largest Buildout” in the History of Energy Could Hand Investors 435% or More.

To receive timely and actionable investing advice – from stocks and real estate to oil, gold, and global opportunities – sign up to receive the FREE Investment U E-Letter three times a week. Just visit:

See Also: The Uranium Boom: Tap into the World’s Most Sought-after Natural Resource

Alan Gray
Alan Gray is the Publisher and Editor-in-Chief of NewsBlaze Daily News and other online newspapers. He prefers to edit, rather than write, but sometimes an issue rears it's head and makes him start hammering away on the keyboard.

Content Expertise

Alan has been on the internet since it first started. He loves to use his expertise in content and digital marketing to help businesses grow, through managed content services. After living in the United States for 15 years, he is now in South Australia. To learn more about how Alan can help you with content marketing and managed content services, contact him by email.

Technical Expertise

Alan is also a techie. His father was a British soldier in the 4th Indian Division in WWII, with Sikhs and Gurkhas. He was a sergeant in signals and after that, he was a printer who typeset magazines and books on his linotype machine. Those skills were passed on to Alan and his brothers, who all worked for Telecom Australia, on more advanced signals (communications). After studying electronics, communications, and computing at college, and building and repairing all kinds of electronics, Alan switched to programming and team building and management.He has a fascination with shooting video footage and video editing, so watch out if he points his Canon 7d in your direction.