Title: 10 Golden Rules of Investing - How To Succeed in the Stock Markets
Headings: 10 Golden Rules of Investing – A Guide For Succeeding in the Financial Markets
10 Golden Rules of Investing – A Guide For Succeeding in the Financial Markets
Table of Contents
#1. Thou Shalt Not Gamble
#2. Thou Shalt Invest Only in What You Understand
#3. Thou Shalt Cut Your Investment Costs
#4. Thou Shalt Always Be Diversified
#5. Thou Shalt Invest with a Long-Term Mentality
#6. Thou Shalt Fully Invest Your Tax-Sheltered Accounts
#7. Thou Shalt Rebalance Your Portfolio Annually
#8. Thou Shalt Not Despise Your Emergency Fund
#9. Thou Shalt Keep Things Simple, Stupid
#10. Thou Shalt Invest in Thyself

Content: While diversification is great, over-diversification is not. Over-diversification is when you invest in too many assets with similar correlations and end up increasing your risk profile and lowering your potential returns. This is also referred to as “Diworsification,” a term coined by Peter Lynch. One way to ensure you are adequately diversified is to consider all your assets (savings, mutual funds, ETFs, stocks, real estate, company pension…) as one portfolio and manage them as such. I seek to construct a portfolio that is both highly concentrated, yet also diverse in terms of industries, types of value, catalysts, and risk
– Whitney Tilson
Wide diversification is only required when investors do not understand what they are doing. – Warren Buffett
#5. Thou Shalt Invest with a Long-Term Mentality
Invest with the long term in mind. Patience is indeed a virtue. Historical data show that investors who stay the course often come out on top over time. When it comes to investing, compound interest and time are your best friends.