We have 6 rules today, and 6 more rules next week:
1 Cut your losers short and let your winners run
2 Avoid predictions and forecasts
3 Understand crowd behavior
4 Think like a contrarian (occassionally)
5 Asset allocation is crucial
6 Decide if you are an active or passive investor
Generally, a lot of the difficulties with investing lies in the psychology. Buy low, sell high sounds simple but obviously not considering how many people buy and sell at exactly the wrong time.
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