Seven Rules to Follow for any avid Investor

Submitted by Share Trading on 10 December, 2005 - 13:07

Rules are inportant in any trading or investing scenario, here are seven rules for general investors

General Investors - with 'set and forget' rules should consider the next seven investing rules for their own trading plan.

#1 The trend is your friend.
Always follow the trend. Going against it is gambling.

#2 A mate with a hot tip is not your friend.
Hot tips are risky - better if you follow it up with your own research.

#3 Don't buy or sell in one hit, use cost averaging.
This technique can lower the effective cost of the underlying share you are purchasing.

#4 It's time in, not timing, that counts.
Statistics show that time in market pays very well.

#5 Past performance means you've probably missed the boat.
Don't depend on past performance in making your final decision. Look to the future.

#6 Cut your losses, let your profits run.
A simple risk management strategy.

#7 Long-term investing beats short-term trading.
Same as rule #4