- I am 100% responsible for my own decision. I have to digest those information or data for whatever tips, information, recommendation given by anyone, do my own analysis and make my own conclusion.
- I need to filter noises in the market. Need to differentiate facts and rumors.
- Be disciplined in my investment plan and investing strategy. Don't get influenced easily by others.
- Learn from others and never stop learning.
- Don't be hero in the market. I can never beat the market.
- Be firm when it is time to get out of the position and cut loses. (this is quite tough to me for the time being but I have made some good progress)
- Endure, endure, and endure! Wait for the right time to buy. (Now I start to understand what the trainer taught me: the toughest thing to do is to wait!)
- Invest what I can afford to lose.
- Don't put all eggs into my basket. Diversify my portfolio but don't over diversify.
- Don't be greedy!
Saturday, August 15, 2009
WOW! I have my own investing 10 commandments now! :)
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Very sensible rules to live by particularly the one on greed.
ReplyDeleteBut it is not so easy to execute. I think I will be a successful trader one day if I can stick to the rules 100% consistently! :)
ReplyDeletehi, shouldn't we be greedy when others fear, and fear when others are greedy? (contrarian)
ReplyDeleteHi Purplebear, this greedy rule is a general rule refers to all circumstances for me.
ReplyDeleteie.
(1) Offload my position when my profit target is met as per my trading plan.
(2) When the stock price is dropping (for value investing), it is not necessary a good thing to accumulate more shares by dollar cost averaging method.
(3) As I am not Warren Buffet, being extremely greedy (buying a lot) when the market is bearish as a strategy is not suitable for me as I don't have the strong holding power (5 to 10 years).
Thanks for the comment because you helps me to shape my definition of greedy more clearly!
Cheers!