I have a few thumb rules in investing which have helped me a lot of over time. These are not some universal ten commandments but they have kept me out of trouble, especially the tenth one !
Thou shall not buy a stock on a broker or a TV channel’s advice
Thou shall not trade
Thou shall avoid predicting or investing based on short term forecasts or outlook
Thou shall not chase momentum stocks
Thou shall not invest in an IPO.
Thou shall not use leverage
Thou shall learn to live within means so as to have investible funds
Thou shall not buy gold, commodities or any kind of fancy and complicated instruments
Thou shall not chase returns – if it is too good to be true, it is a trap
Thou shall say ‘Yes Dear’ when asked by wife if she looks good in a dress – most important rule to have a happy married life 🙂 .
You can choose to ignore the first nine rules based on your personal style of investing, but if you ignore the tenth rule – do so at your own peril !!!