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: Whether you're riding market lows which represent buying opportunities, or soaring at highs so they can make money by selling, don't count your chickens before they've all hatched. After all, you may have to make a move at some point, because as the first two rules indicate, markets revert to the mean. Markets always reverse to the mean. 4. Market Corrections Don't Go Sideways
Sharply moving markets tend to correct sharply, which can prevent investors from contemplating their next move in tranquility. The lesson here is to be decisive in trading fast-moving markets and to place stops on your trades to avoid emotional responses. Stop orders help traders in two ways when asset prices move beyond a particular point. By determining a specific entry or exit point, they can help investors limit the amount of money they lose, or help them lock in a profit when prices swing in either direction. 5. Public Buys Most at the Top and Least at the Bottom
The typical investor reads the latest news on his mobile phone, watches market programs, and believes what he's told.