I get a lot of people that ask me about investing rules. I wish I could always practice what I preach. I wish I had the mentors and tools at my disposal today that I did when I first caught the investing bug. Here are my sic favorite and a bonus one for good measure:
1. Cash is King and a strategy.
If you are smart and/or lucky enough to have a bit of it, you hopefully know what I mean. Drawdowns of 20 percent are a fact of life if you take risk. Beyond that you are risking the franchise.
2. Diversification is overrated.
Bill Gates is only diversified because he has money managers and an estate plan to think about. You don’t have that problem.
3. Domain expertise is underrated
The faster you focus on building domain expertise the better. The more honest you are with yourself about your area of passion, better still.
4. Time is Money
We are terrible at measuring and valuing all the time we spend worrying, thinking and talking about money.
5. Keep hard costs down because you will suck at managing time
See truth number 3.
6. You can read Economists, just don’t invest with them or because of them.
See truth number 3.
PS – If you are a Beginner/Novice investor and like trading forex for anything more than a lesson in leverage or for entertainment, you will never have enough money to invest.
What I want to know is how to find an investment mentor.Where can we find these guys?
Read my blog and follow the suggested stream on Stocktwits for a year
Have you ever thought about a wiki for all this great stuff? It seems like it would be nice for navigating through the guides for new users instead of rolling off into archives. Or is that not hip any more? I can’t keep up.
whats a wiki…:)
let me talk to my team.
It’s kind of a colaborative documents thing. Not as much comment interactive but finding stuff is easy and I can imagine it would probably grow pretty fast. Wikipedia is the big popular one of course but I see wikis used on a lot of sites too.
guh. it’s been a long day. :)
good post howard..I didnt understand the P.s. note at the bottom about FX???? hehe