Sunday, May 10, 2009

Investments basics

In the first post, I would like to share with you my investments basics, the ones that will guide this blog. May be, you will find that them are not suitable for you. That is good, because you should have your own guidelines. They are very common, but I always try to keep in mind these ones:

  • Always wait for the setup. Know when to sell before you buy. Set up exit strategies. Cut your losses, let your profits run.
  • Develop your investment philosophy.
  • DISCIPLINE is the key to successful investing.
  • Big profits do not involve big risks. It is not risky to buy securities for a fraction that they are worth.
  • Define your circle of competence.
  • When there is nothing to do, do nothing.
  • Admit and learn from your mistakes.
  • Survive first, and make money afterward. Invest first, investigate later (listen to the market).
  • Diversification is a protection against ignorance.
  • If you do not understand it, do not do it.
  • Follow your own system religiously.
  • Invest for stimulation and sell-fulfillment, not only for money.
  • Enjoy the process of investing.
  • Lives and breathes investing 24 hours a day.

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