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1. Thou shalt not pay ridiculously high prices for stocks because overvalued companies always fall back to earth! |
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2. Thou shalt pay close attention to charts when making decisions - a picture can be worth more than a thousand words! |
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3. Thou shalt not get caught up in the latest stock market fad. Every fad ends, and they ALL end the same way…badly! |
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4. Thou shalt not follow the crowd - when it comes to investment, inevitably the crowd is ALWAYS wrong. |
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5. Thou shalt be cautious when investing borrowed money. Borrowings must be repaid in full whereas investments can fluctuate in value. |
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6. Thou shalt carefully consider a company’s downside risk before investing. Preservation of capital is just as important as trying to make a fat profit. |
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7. Thou shalt be patient when investing. Waiting for the right time to invest and exercising patience when investing is critical in the stock market. |
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8. Thou shalt be disciplined and cut losses when necessary. Hoping the stock market will bounce back often leads to ruin. |
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9. Thou shalt buy straw hats in winter - what the stock market shuns today is often embraced tomorrow! |
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10. Thou shalt be honest with thyself. Admitting investment mistakes is imperative in share markets. |