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Laws of Investing in Shares

By donnasteiner

 Laws of Investing in Shares 

1.  Never invest more than you are prepared or can afford to lose

2.  Never invest in anything you don’t understand
3.  Never put more than 10% of your money into any single investment.  Diversify by choosing several different investment types e.g. shares, property, business; or industries e.g. health, finance, property.
4.  Don’t jump into an investment out of fear of losing an opportunity.  Use logic.
5.  When investing in shares always have a stop loss (an amount you are prepared to lose e.g. 5%)
6.  Always have an exit strategy.  Work out what the upsides and downsides are.
7.  Always buy when there is weakness in the market and sell when the market is strong.
8.  Do not get greedy.  If the investment is overvalued get out.
9.  Protect your profits with stop losses.  When the share price increases increase your stop loss.
 

Happy investing.

 

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To get a free DVD on commodity and foreign currency trading:  http://www.21stcenturylifestyletrader.com.au

 

For more investment strategies:  http://www.21stcenturyacademy.com.au

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This entry was posted on November 25, 2008 at 8:05 am and is filed under Investing, Money, Options, Save Money, Shares, Trading, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Laws of Investing in Shares”

  1. Option Trading » Laws of Investing in Shares Says:
    November 30, 2008 at 8:57 am | Reply

    [...] donnasteiner wrote an interesting post today onHere’s a quick excerpt  Laws of Investing in Shares  1.  Never invest more than you are prepared or can afford to lose [...]

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