Title: 10 Timeless Rules for Investors
Headings: 10 Timeless Rules for Investors
10 Timeless Rules for Investors
Key Takeaways
1. Markets Return to the Mean Over Time
2. Excess Leads to an Opposite Excess
3. Excesses Are Never Permanent
4. Market Corrections Don't Go Sideways
5. Public Buys Most at the Top and Least at the Bottom
6. Fear and Greed: Stronger Than Long-Term Resolve
7. Markets: Strong When Broad, Weak When Narrow
8. Bear Markets Have Three Stages
9. Be Mindful of Experts and Forecasts
10. Bull Markets Are More Fun Than Bear Markets
The Bottom Line
Article Sources

Content: Don't get thrown by the daily chatter and turmoil of the marketplace. 2. Excess Leads to an Opposite Excess
Like a swerving automobile driven by an inexperienced youth, we can expect overcorrection when markets overshoot. Remember, a correction is represented by a move of more than 10% of an asset's peak price, so an overcorrection can mean bigger movements. During a market crash, investors are presented with really great buying opportunities. But they tend overcorrect in either direction—upward or downward—and trading can happen at unbelievable levels. Tuned-in investors will be wary of this and will possess the patience and know-how to take measured action to safeguard their capital. 3. Excesses Are Never Permanent
The tendency among even the most successful investors is to believe that when things are moving in their favor, profits are limitless. That's just not true, and nothing lasts forever—especially in the financial world.