1. Only play with money you can afford to lose.
2. Trade only in tax sheltered account (investing okay
in taxable account e.g. >18 months...)
3. Average into a position, by thirds is good, this
doesn't have anything to do with the chart, just a way
of easing into an idea, prevents you from buying on
emotion.
4. If a loss in something starts bugging you, pay for
it with a gain in something else, nothing wrong with
being even.
5. No margin
6. Don't bother with limit orders, if you want it
buy it, they are going to get their cut no matter
what, live with it.
7. Periodically review the list of stocks you follow,
thin some of the crappy ideas out (I finally took
Sybase of my list of things I follow, why bother!)
8. Screw options, I'm even on them, and I'm out.
Finally, this last rule is for moneymanagement in
general:
9. One of the best ways to generate money is not
to invest, not to trade, but merely to not spend,
works every time, foolproof. |
