The first 4 rules were basically telling us to keep a cool head and to ensure we make good decisions as far as stock investing is concerned. Another aspect of being a successful investor is continual learning and having a good control of your portfolio. Stay cool by using your head, not your heart when dealing with your nest egg. Let’s take a look at the remaining 4 rules……
Don’t be snobbish
Be humble…. If you are not sure of what to do, take time to learn. Ask for advice. If you don’t ask, no one would know that you need help. Do not be afraid to be laughed at. Remember that “those who laughed last always laughed best” and “pride goes before a fall”. It’s better to look stupid than to be stupid. Looking stupid is not stupidity and stupidity cost you money eventually.
“Worry is interest paid before it is due”. People tend to worry when they see their investment not doing as they have expected. If investing is so predictable, then every body will just be doing investing and nothing else. So why pay your interest before it is due? Stop worrying and put your energy into more productive avenues.
Don’t get out of perspective
When the market drops, it is naturally that the human mood will follow suit. And when market surges, people tends to think that a bubble is in the making. If this is how you think, there is never a right time. Investing then becomes a chore. Timing the market is near impossible. So, keep your perspective, stay away from all the “Don’t”.
Know what you want and know how to go about getting it. Eleanor Roosevelt once said “It takes as much energy to wish as it does to plan”. Wishing isn’t getting you anywhere but planning will move you on.
Investing and planning your finances may be an unnatural act. Our brain is trained to undervalue long-term goals and have a tendency to exaggerate the cost of short-term sacrifices. People who do some kind of planning and specify their needs have twice as much savings than those who don’t.
Set specific and realistic goals. “I’ll put $200 a month into a mutual fund to build my retirement fund” is more likely to succeed than “I’ll start my saving plan.”Be specific in your investment and financial planning!!
These 8 simples rules will help you overcome the volatility of the present market place if you put them to use. Have a fun-filled investing journey your life-time through.
“TAKE THE ‘TOUGHNESS’ OUT OF INVESTING”
“ENJOY WHILE YOU EARN”