20 Rules For Successful Investing
I’ve been seriously investing for almost 1.5 years now and have learned a lot along the way. I’ve managed to grow my portfolio from around $5,000 to now over $121,000 as of recording this. I consider this extremely successful and as such would like to share with you the 20 rules I’ve followed in order to achieve this.
*Disclaimer: This is not financial advice and is purely for entertainment purposes. All my stock information is 100% accurate, but my crypto data may or may not be simulated*
While I don’t always follow these rules perfectly, I’ve found they are very helpful and provide a great guide to refer to when investing to avoid making amateur mistakes or risky trades. This applies to both crypto and stock market investing and while none of this is financial advice, maybe you will find these insightful and informative for your investing journey.
Follow along my journey as I aim to retire in the next 9 years before 2030 via saving at least 65% of my income and investing all of it into cryptocurrency and stocks. My strategy if fairly low-risk and long term. My stock focus is mostly on passive income and dividend stocks while my crypto focus is on growth with 90%+ of my investments in ETH & BTC.
Rules For Investing:
- Buy low, sell high
- Focus on fundamentals
- Don’t invest in everything, do not spread yourself too thin
- Invest locally
- Utilize compounding interest where possible
- Only trade with money you have
- Dollar-cost average in with every paycheck
- Keep up with your investments
- Invest long-term
- Research before buying, know what you’re investing in
- Do not day trade
- Do not panic sell or panic buy
- Do not trade based on emotion
- Diversify your investments, do not invest everything in just one asset
- Do not follow what everyone else is doing
- Avoid liabilities, acquire assets
- Do not blindly trust actual & perceived authorities
- Understand bull markets & bear markets
- You are not a genius
- Take advantage of good arbitrage & avoid bad arbitrage
While these aren’t necessary to follow all exactly, this is a great foundation to start with. For example, maybe you prefer lump sum investing or you do want to attempt to day trade, that isn’t wrong, but personally, it’s not what I’ve done to achieve my success and I wouldn’t recommend it as it’s much riskier than my strategy. Some people like to trade options or do margin trading, but many of these techniques are so advanced that you should only be utilizing them if you’re an expert and thus probably don’t need to read this. This is intended for people getting started who want a guide. I would go as far as to say these rules should work for anyone, but you can invest with more risk should you want to.
The way I’ve managed to grow my wealth has been the safest route with the least risk given the assets I’ve invested in. Obviously, cryptocurrency is riskier than stock investing, but within crypto, I’ve still stuck to the least risky cryptocurrencies. For example, if you were to try and day trade stocks, you’re probably going to lose more or make less than had you just invested long term in a solid cryptocurrency like Bitcoin.
Do you agree with these rules? Am I missing anything? Do you prefer to invest in crypto, stocks, or otherwise? What is your favorite asset class? Let me know what you think about this in the comments below and don’t forget to subscribe!
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