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: Excesses are never permanent and try using stops to take the emotion out of trading. Don't go with the herd, but remember that fear and greed need to take a backseat to discipline. Consider alternative indexes to watch the health of the market. Take expert advice and forecasts with a grain of salt. 1. Markets Return to the Mean Over Time
Whether they face extreme optimism or pessimism, markets eventually revert to saner, long-term valuation levels. According to this theory, returns and prices will go back to whence they came— reversion generally puts the market back to a previous state. So when it comes to individual investors, the lesson is clear: Make a plan and stick to it. Try to weigh out the importance of everything else that's going on around you and use your best judgment.