Firstly, I can provide you with my own principles of investing: 1) You should define risk/yield ratio before invest. I mean your investment portfolio should reflect your risk tolerance if you have big amount of money and want to receive a stable income it will be better to invest in some blue chips and forget about risky stocks like biotech and vice versa. 2) Do not put all eggs in one basket. You portfolio should be well diversified to protect your money from big loss in case of unexpectable circumstances arise. 3) Invest only in those sectors, where you have sufficient experience. Investors pick up only the stock where they specialized in. there is many hidden rock in each industry, which you ought to know, otherwise pick up some ETF, which will be tracking whole market performance. 4) Define the terms of investment before invest. Some stocks are good for short term investment and some for long term, it also depends on economic conjuncture. 5) Take a look at the fundamentals of the company especially at enterprise value, cash flow and debt. 6) Compare a performance of a company with its rivals. 7) Track the performance of the company in retrospective, especially in times of crises.
What do you think these principles are correct?
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The main investing principles
