The simple rules for investment

[Starmix]

There are two simple rules of investments. We have to remind ourselves of these to avoid losing big money. There are times when we want to do things on our own. Somehow, we regret what we did in the past for not listening to the advice of the veteran investors. This time, many learned a lesson from their arrogance, well if they have much money, who cares if they lose millions, but for the ordinary investors try to check these riles :

Rule number 1: Never lose money, and
Rule number 2: Never forget rule number 1.

These rules are easy to recall and they will kick you out from danger of losing money.

 

[Springtime]

To me, the two rules of investments are: 1. Know your risk appetite, that is how much risk are you willing to take. 2. Diversify your portfolio. Never put all eggs in one basket.

 

[Starmix]

That falls to rule number 1, not to lose big money. You'll do this once you're already facing at the real investment which could be risky or not.

 

[freelancermaria]

To me, the two rules of investments are: 1. Know your risk appetite, that is how much risk are you willing to take. 2. Diversify your portfolio. Never put all eggs in one basket.

That is correct. Only put in what you can afford to lose. I am pretty cautious, and I am not looking to take big risks with my financial situation. Also, it is important to diversify your portfolio so you do not risk losing everything.

 

[Starmix]

These two rules are rules from the millionaire investors. I didn't create them. They're sent to me by by an investor friend.