1. Nothing new ever occurs in
the business of speculating or investing in securities and commodities.
2. Money
cannot consistently be made trading every day or every week during the year.
3. Don’t
trust your own opinion and back your judgment until the action of the market
itself confirms your opinion.
4. Markets
are never wrong – opinions often are.
5. The
real money made in speculating has been in commitments showing in profit right
from the start.
6. At
long as a stock is acting right, and the market is right, do not be in a hurry
to take profits.
7. One
should never permit speculative ventures to run into investments.
8. The
money lost by speculation alone is small compared with the gigantic sums lost
by so-called investors who have let their investments ride.
9. Never
buy a stock because it has had a big decline from its previous high.
10. Never sell a
stock because it seems high-priced.
11. I become a
buyer as soon as a stock makes a new high on its movement after having had a
normal reaction.
12. Never average
losses.
13. The human side
of every person is the greatest enemy of the average investor or speculator.
14. Wishful
thinking must be banished.
15. Big movements
take time to develop.
16. It is not good
to be too curious about all the reasons behind price movements.
17. It is much
easier to watch a few than many.
18. If you cannot
make money out of the leading active issues, you are not going to make money
out of the stock market as a whole.
19. The leaders of
today may not be the leaders of two years from now.
20. Do not become
completely bearish or bullish on the whole market because one stock in some
particular group has plainly reversed its course from the general trend.
21. Few people ever
make money on tips. Beware of inside information. If there was easy money lying
around, no one would be forcing it into your pocket.
[Credit goes to Jeffrey Saut
of Raymond James Financial for supplying the above list.]
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