The 4 Pillars of Investing:
Don't End Up as Stock Market Road KillWhen the markets act up, everyone (and I'm guilty of it sometimes, too) refuses to overlook the day to day shock and awe reporting and refamiliarize themselves with the 4 basics of investing. Instead they worry incessantly about the immediate economic landscape. Worst of all, they want, and try, to figure out precisely what will happen next - so they can trade and profit from it.
Even our most thought out forecasts, theories and/or hunches are bound to be wrong more than they are right - and our portfolios will suffer from it...
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Predicting the Economy
The renowned investor, Peter Lynch clearly understood that all the worrying and questioning is a complete waste of 99.99% of our time, saying, "If you spend 13 minutes per year trying to predict the economy, you have wasted 10 minutes."
So as hard as it may be right now, we need to stop worrying about what's going to happen tomorrow, next week, even next year. If we're truly after long-lasting investment success, we only need to answer the big questions - the important ones that we can take action on no matter what's happening in the markets - like:
How can I get the highest return with the least amount of risk?
How can I protect both profits and principal?
What can I do to guarantee my investment portfolio will be worth more in the future?
At first blush, you might think the answers to such questions are similarly elusive. But they're not...
The 4 Pillars of Investing
Since we can all benefit from a quick refresher course now and again, let's get reacquainted with our 4 pillars of investing today...
Pillar 1: Stick to an Asset Allocation Model
Pillar 2: Adhere to a Sell Discipline
Pillar 3: Understand Position-Sizing
Pillar 4: Always Look to Minimize Investment Expenses and Taxes
Investors - Don't Let The Market Cloud Your Judgement
As Peter Lynch observed, "It [the market] does get nasty at times, but it shouldn't cloud investors' judgments about thinking long term. The key organ here is your stomach. Everyone has the brainpower, but not everyone has the stomach for it."
WHITE PAPER ABOUT INVESTING
For a free copy of a white paper "Secrets of Portfolio Investing" CLICK HERE
Good investing,
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