The Top 3 Rules of Investment


Year and last few years it has been very difficult for someone to invest and make money. With turbulent markets, violent commodity swings and a crashing house market many people are scratching their heads as to where they should be putting their money or investing in the next few years.

Many people are jealous of the top investors are out there, as they always know where to go to make money no matter what the economic environment or situation is. They seem to have a knack for going to where the money is. Most people do not realize, but the reason these top investors almost always make money is due following simple rules, and their own strategies that have made the money in the past. There are no complex mathematical equations to go along with the simple strategies. It really is all about money management and common sense.

Even though the economy is in a very dire situation right now, you have to understand that there are very good opportunities right now to invest and make a lot of money. But you must follow three simple strategies right as there is a lot of uncertainty out there in today global environment.

If you follow these top three rules of investing you are almost guaranteed to make money and Succeed.

The top three rules are: –

  1. Investing is not hard at all. You just have to realise when and where to go to the money to make it yourself. It is always a good idea to follow the investment advice of successful investors, or find yourself a mentor that can show you the ropes and expose their ideas and areas of investment. Their many years of investing and experience can teach you a lot of things, and save you making a lot of mistakes in the short term and long-term.

  2. By panic, sell hysteria. This is one of the underlying principles of investing that can make you a lot of money quickly. The average investor normally does the opposite of this, when they see a bullish run or a trend somewhere they normally buy after it is too late. There they wonder why they lose their shirt on a particular investment down the track. Since day one investors have always made money from buying low and selling at a higher price. This is pure common sense and simple to do.

3. Diversification. This is a very simple strategy also. Never ever put all your eggs in one basket. Let’s say you put all your life savings in one particular stock, mutual fund or property, And something catastrophic ends up happening you are at risk of losing all your capital on that one investment. Everything is gone. That is why it’s always important to diversify your portfolio around several different investments in case one or two of these and are failing somewhere down the track. You still have the other investment you can rely on.



Source by Jon Safer