12 rules to invest and enjoy(Read article summary)
Learning to invest shouldn't be a chore. Here's how to make money and have a good time doing it.
The Blogfather Howard Lindzon put this post up recently where he laid out a handful of really simple rules to learn how to invest while enjoying oneself. The thing about investing rules is that we all know what they are, after a while at least. The trouble we have is sticking to them and reminding ourselves of them.
So it's helpful to see them in print here and there. Howard's version is great:
1. Do not let trades become investments, but it is ok to let investments become trades.
2. Personality first. Know yourself! (The markets will exploit your weaknesses)
3. Develop your own approach.
4. Be flexible because you will be very wrong.
5. Find mentors. Today! Don’t expect anything from them.
6. START today. While learning how to invest, decide on an amount that you can invest in the markets and dollar cost average. Invest an equal amount of money once a month or quarter for a long period of time.
7. Keep your costs down.
8. Focus on your strengths, invest some profits in your weaknesses.
9. Do not ‘practice’ investing and do not call your investing money ‘Vegas’ money. Develop a routine.
10. Write it down! Start a journal.
11. Immerse yourself in the language of the markets and investing. It has never been easier.
12. Knowing when and how to sell remains the most mystical of processes. I just say do it consistently. There is no shame in leaving money on the table.
Good stuff and simple.