Rule No. 1: Never lose money
Let’s kick it off with some timeless advice from legendary investor Warren Buffett, who said “Rule No. 1 is never lose money.
Rule No. 2: Think like an owner
“Think like an owner,” says Chris Graff, co-chief investment officer at RMB Capital. “Remember that you are investing in businesses, not just stocks.”
Rule No. 3: Stick to your proce
"The best investors develop a process that is consistent and successful over many market cycles,” says Sam Hendel,
Rule No. 4: Buy when everyone is fearful
When the market is down, investors often sell or simply quit paying attention to it. But that’s when the bargains are out in droves.
Rule No. 5: Keep your investing discipline
It’s important that investors continue to save over time, in rough climates and good, even if they can put away only a little.
Rule No. 6: Stay diversified
Keeping your portfolio diversified is important for reducing risk. Having your portfolio in only one or two stocks is unsafe, no matter how well they’ve performed for you.
Rule No. 7: Avoid timing the market
Experts routinely advise clients to avoid trying to time the market, that is, trying to buy or sell at the right time, as is popularized in TV and films.
Rule No. 8: Understand everything you invest in
"Don’t invest in a product you don’t understand and ensure the risks have been clearly disclosed to you before investing,”
Rule No. 9: Review your investing plan regularly
While it can be a good idea to set up a solid investing plan and then only tinker with it, it’s advisable to review your plan regularly to see if it still fits your needs.
Rule No. 10: Stay in the game, have an emergency fund
It’s absolutely vital that you have an emergency fund, not only to tide you over during tough times, but also so that you can stay invested long term.