101 Investment Lessons

Saya ingin mengutip dari buku 101 Investment Lessons (by Michael Sincere)

1. choose a successful Investment Strategy
All the pros, have reasons to believe a particular stock will go up or down in value.
This reasons make up their Investment strategy, and every decision they make in the market is based on this strategy.
A Strategy helps you limit the number of stocks you will look at, because you will be careful about the stocks you buy.

Value Investing.

Growth Investing

Contrarian Investing

Quantitative Strategy.

Dow Strategies.


2. Create a written set of rules.
For example, that many Growth Investors have a rule to buy stocks that are growing more than 20 percent per year.
Many Value Investors may have a rule not to buy a stock with a P/E ratio higher than 15.
Consider developing rules for buying, rules for selling (it helps you make the toughest decision: When to Sell), and this rules will not totally eliminate losses, but should help you to trade more objectively.
By relying on a set of rules, you will prevent fear, greed, and hope from clouding your judgement.
It is essential, says Martin Pring (Investment Psychology Explained), that you regularly review your rules as your financial position, investment philosophy, or market conditions change over time.