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Rules for novice investors

Updated on January 31, 2011

The most valuable lessons about
investments are learned through experience.
An MBA graduate is great, but not
become a master of business.
If you want to play and win, you must follow
some practical rules that are not
in the books of theory. Here you go:
1. When someone says "Things are
different this time, "are trying to
sell you something.
2. Do not invest in what you do not understand. If
it is likely to get hurt. As
the saying goes, shoemaker to his shoes.
3. When a company files delay
financial statements for any reason, avoid
4. For every 1% rise stock market
the investor believes that his own IQ rises
a point. For every 1% lowering the market,
investor believes that the IQ of your manager
low a point fund.
5. Investors feel risk rejection.
The pain of losing $ 1 is greater than the pleasure
generated by winning $ 1.
6. Almost all investors are stubborn.
Aman be right, love to make money, and more
even when stocks are rising.

7. Financial groups, also have a
prone to stubbornness. The ratings
television and magazine subscriptions are
with higher stock market
higher than low. Optimism sells. The
8. Even a clock without batteries when two hits
times a day, both permanent and low
permanent increases are watches without batteries.
9. When you hear an interview with a
fund manager, not freak out or buy
recommended actions. Even the best
managers make mistakes in a third of its
10. If the CEO of a company has a
Doctor of Philosophy, avoid investment. A
Often the CEO is bright for his own
well, and the tree you can not see the forest.
(Of course, there are exceptions to this
11. Stay away from companies with accusations
of crime. Rarely does a cockroach alone.
12. When a company exceeds its
but misses earnings expectations
income, beware.
13. Managements are not always good
may make the stocks go up, but
Managements ill almost always make
14. Good CEOs find ways
realize their expectations year after year.

A bad CEO always finds a way not

concrete expectations.
15. The integrity of management should be
a root cause when deciding
an investment.
16. Beware of equipment
management saying "We expect an effect
rebound in the second half of the year. They
have no idea what will happen, but
as it is impossible to know, are not
challenged by that statement.
17. The opportunities to buy appear
eventually, so keep watching
what happens and ready to gamble.
18. Always keep some money for days
rain. The ability to move
quickly is valuable. Having cash is
like having an option to buy.
19. Buy stocks when everyone
frightened. These are the times for
make a difference.
20. Do not worry about leaving some money
on the table. The only person who buys
bottom and sell at the top is a liar.
21. With all other variables equal,
best buy stock in week 52 of
lower than in the week higher.
22. Each month, the fluctuations in prices
actions are completely
unpredictable. Anyone who tells you
different is arrogant, is confused or trying to sell you something.

23. When short-term sellers
accumulate insame actions , avoid them.
Of course, short-term sellers
wrong sometimes, but have only
miss you, and there are many behind
actions you can choose.
24. The shares may remain
overvalued for years. Over time, the
market rises, so when you're short,
bets will turn against him from the
first day.
25. A company that does not raise
dividends from stocks is like a bonus
no assets.
26. In a depressed market, experts
living voice proclaiming, "Buy and Hold and
does not exist. "It never did and never will be.
27. And retain high pay is in the past.
28. If you can not valuing a stock, not
should buy, even if its price has
fallen and are much cheaper than
29. Less than one in ten packages
stock are "lake-term purchases" in
any given time. This
Thus, the ability to say NO is much
more important than the ability to say YES.
30. Patience is a virtue helpful. The
forward in an expensive habit.
31. Few investors can resist the temptation to trade often.

32. Trading is often a crutch for
those who have no patience, conviction or
confidence in their ability to analyze a
33. You have no reason or be
wrong about a stock to several
years after they were purchased.
While you will be good or bad luck.
34. Keep your winning stocks. A
There is often a good reason
are winners.
35. The answer to "How low can
get there "is often zero.
36. Almost all are disappointed when
shares down.Esto es ilógico. The
investors who want to be buyers
net of shares for the next 20 or 30
years should want a depressed market
for 20 or 30 years, followed by the best
bull market in history.
When a company has more than 15%
Sales by any customer, avoid
38. In the list of 400 richest people, the
Most are entrepreneurs, investors
"buy and hold"and those who inherited their
39. Most shares are held
slightly overvalued all the time.
40. Many people spend more time
thinking of profit that risk.
But the risk lurking behind them.

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