Below are the first 5 of the his 20 points at Josh’s Twenty Common Sense Investing Rules
from The Reformed Broker by Joshua M Brown
Go check out the rest but I felt these were the best. He also includes the ones to stay away from like Mutual funds… they are way old and too expensive when you can get ETF that have almost the same exposure, etc. and the costs are less for them. Great stuff for “investors”. – WD0AJG
The below is for ordinary investors, not professional traders or those aspiring to become professional traders…
1. Buy mid-sized and large stocks that are growing earnings and revenue
2. Buy large and mega-sized stocks that are paying consistent dividends and have low debt-to-equity ratios
3. Read the news on your stocks once a week maximum, once a month minimum
4. The moment a stock disappoints you or makes you wish you hadn’t bought it, sell it. Immediately and regardless of price. Life is too short to hope a bad decision reverses itself
5. Don’t get In or Out of the market , but modulate your exposure up and down as a function of what you think is happening. Your guess based on all the available news and indicators is as good as anyone else’s – and it is more important than anyone else’s for sure because it is your money on the line