Investing Vs Trading

Investing_vs_Trading

7 Golden Rules for Investing

You may be a rookie investor, but that doesn’t mean you need to make costly rookie mistakes. Follow these seven golden rules, and you’ll be on the path to success.

1. Play the Long Game

Never invest in the short-term. The market moves up and down in natural cycles that can’t be timed. Investing for less than three to five years doesn’t give you enough time to rebuild asset value if you hit a downturn at the wrong time.

2. Don’t Put All Your Eggs in One Basket

Don’t put too much of your money in any one stock where one issue could destroy your wealth. Diversify with low-cost, index ETFs and avoid stock picking.

3. Make Investing a Monthly Habit

Despite headlines continually calling a market top or bottom, no one can accurately determine where we are in the cycle at any given time. The best way to guarantee that you buy at the right times is to make investing a monthly habit. Invest each and every month, regardless of headlines or market performance.

4. Invest Only What You Can Afford to Lose

Investing is risky. While the long-term trend has historically been upwards, there are also years of deep declines. If you need money in the near-term, or the thought of seeing your account balance drop 20% makes you sick to your stomach, don’t invest those funds.

5. Don’t Check Your Portfolio Everyday

Investing is the one place where a “head in the sand” strategy might be the smartest method. Set up auto deposits into your investment accounts each month and only look at your portfolio once every three to six months. It reduces the likelihood of panic selling when the market falls or piling in more money when everything seems like rainbows and butterflies.

6. Keep Your Fees Low

Many brokerages charge trading fees. And investment providers from financial advisors to Robo-advisors charge management fees. All these fees eat away at your wealth over time.

Sticking to index funds and ETFs keeps your fees low while guaranteeing you see the performance of the market so that you can save more money in your pocket.

7. Listen to Warren Buffet’s Investing Advice

Warren Buffett is possibly the most famous investor in history. He’s created a multi-billion-dollar net worth in just one generation. Learn from his advice to invest in your future!

“Someone is sitting in the shade today because someone planted a tree a long time ago.”

“I never invest in anything I don’t understand.”

“If you don’t find a way to make money while you sleep, you will work until you die.”

“The stock market is a device for transferring money from the impatient to the patient.”

“It is not necessary to do extraordinary things to get extraordinary results.”

Trading and Investing are precisely the opposite.

1. Play the Short Game

2. Put All Your Eggs in One Basket

3. Make Trading a Daily Habit

4. Trading Only What You Cannot Afford to Lose All

5. Check Your Portfolio Everyday

6. Do Not Keep Your Fees Low

7. Do Not Listen to Warren Buffet’s Advice

Are you an investor or a trader?

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MiNi Trader

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I occasionally share stocks and indices to friends only. Things have gone well in the past few years. I feel good when sharing enthusiasm and interest in stock trading. With this in mind, I love to share with people interested in learning to trade in the stock market, and they do the same thing by sharing their experience with others after attending my sharing session.

I do not share the chart basics knowledge such as candlesticks, volume.

I only share a proven trading skills with you. They are two different type of skill levels. The professional skill level is how to read chart properly using my way. The next level of trading skill is that you don’t read the chart and fundamental, however, you know the stock market move before the move.

Trading is not always easy. In this community group, we only share the high-probability stock that we will mostly be trading. By sharing, it does become easier.