5 Golden Rules of Successful Investing.

I am not a Stock market investment guru, but I am an experienced investor. What do I mean by that? well, I learned investment the hard way, by making mistakes, by even losing money. Hence, I can guide you through the golden rules of investing which I learned so far and I have a bonus tip in the end which helped me understand the stock market a lot.

5 Golden Rules of Successful Investing.

Golden Rules of successful investing

Rule 1.  Do not fall for Buy & Sell 

Do not think of the stock market as a casino, if you buy & sell stock on daily basis, that's called trading. Trading is stock market volatility tool that might lure you in its trap of earning 5x to even10x profits. it brings the equal risk factor which most investors don't realize at first. The stock market should be treated as a tool for your money to work for you, not you to work for it.

Rule 2. Cut the bad ones & Save the good ones

What if I tell you that you've been doing the opposite? I'll straightaway tell you the mistake that most men make about investment. They sell the good stocks, booking a decent profit and wait for the bad ones assuming to make profits out of it. Do you see it? you've been cutting the good ones and saving the bad ones. 

Rule 3. Do not follow the trend

In the beginning, when you start investing and looking out for stocks. the basic instincts are to follow other people's actions when they buy, you buy and when they sell, you sell. you have to understand why and when does a stock go up and down... read along and I'll explain it in the bonus tip.

Rule 4. Zero emotions

Risk is always a factor when you invest or trade in the stock market. So, one should not get emotional about their investments and should act. you cannot stop risk but what can you do is become a risk-averse investor.  risk-averse investors manage their risks to be least. so even when the stock market crashes, they get out with the least loss.

Rule 5. Do not trade

To quote Warren Buffet, "The stock market is a device for transferring money from the impatient to the patient"
Most people must think that trading is a great way to multiply their profit. what they don't see is the equal loss coming their way. So be a patient investor.

Bonus tip

"A good investor is not who makes good profit when the market is in an uptrend but who make the least losses when the market is down"