20 Rules for Markets and Investing

Follow these rules, and you'll succeed

In markets and in life

1. Be humble

Having confidence is good in many areas of life.

However, it can hurt investors by leading them to take too many risks.

2. Don’t Trust, Verify

Enticingly high yields. Smooth returns. Perfect market timing.

These are just a few of the siren songs that can lead investors astray.

Always do your homework.

3. Play the Long Game

You have a 53% chance of daily returns.

There has never been a loss over 20 years.

4. Understand That Every Time Is Different

Always prepare for changing market conditions.

For example, every bear market is unique:

5. Pay No Need to Predictions and Price Targets

6. Embrace Risk

Risk can seem negative, but it brings potential rewards.

Long-term investors must accept some risk for better returns.

No one can time the market.

Therefore, pay no attention to Price Targets.

7. Buy the Haystack

All you need is a few big winners.

Don't look for the needle. Instead, buy the haystack.

8. Fight the Fed

"Fight the Fed" means hold stocks during tightening.

Be disciplined and don't sell during downturns.

9. Expect the Unexpected

Always prepare for unexpected events

And act accordingly.

10. Don’t Chase the Past

Don't chase the past.

Focus on future opportunities.

11. Focus on Saving Before Investing

Saving before investing builds a solid financial foundation.

12. Simplify Whenever Possible

Simplify your investments for easier decision-making and management.

13. Learn to Be Good at Suffering

Learn to endure market fluctuations and tough times.

14. Never Interrupt Compounding Unnecessarily

Never interrupt compounding; let your investments grow steadily.

15. Tune Out the Noise

Avoid distractions and focus on fundamentals.

16. Reversion to the Mean

Respect reversion to the mean.

However, keep in mind that trends could change.

17. Know What You Own and Why You Own It

Understanding your investments leads to better choices overall.

18. Diversify, Diversify, Diversify

Diversify your portfolio to reduce risk and volatility.

19. Control Your Emotions

Rational thinking leads to better investment outcomes.

20. Be patient

The longer you invest, the more wealth accumulates.