5 Rules to Investing in the Stock Market for Investing CENTS

5 Rules to Investing in the Stock Market for Investing CENTS

Below please find five guidelines for investing in the stock market. A well thought out and balanced investment model is your best bet to long term success and short term principal protection. 5 Rules to Investing is a list you will want to refer to again and again.

5 Rules to Prudent Investing



1. Don't invest unless you can afford half of your principal. If you are not in a financial position to lose a large portion of your principal it is better to sit on the sidelines than to be permanently financially set back/handicapped.

2. You can only truly invest when you are the one who solely determines the timing/when you sell. If you have to wait on a billing buyer timing in the market to determine when you sell you are not in a position of power/influence.

3. Better to let a 100 investments pass you buy than to make a bad investment. For 100 investments that sound too good to be true, there are 100 that are too good to be true. Seek financial guidance from both your CPA and financial adviser before you invest.

4. Don't not to buy when others are greedy. Avoid the temptation to buy when the market is hot and going up, when prices are high.

5. Better to sell when others are greedy. When people start jumping in the market joining the bandwagon as the market is going up, is the best time to sell.

As with all investment advice it is impossible to point to one criteria alone as the overriding rule of investing. Evaluating your own risk tolerance, the international economy, politics, trends, etc. etc. are essential components to a well thought out long term strategy, frequently calling for short term decisions. Always be sure to work with a certified financial planner.

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