5 BASIC RULES TO BE BETTER INVESTOR

I have tens of rules, but I found these five rules very basics how being better trader. Those are all fascinating and easy and worth to consider them. The investment is not a rocket science or brain surgery, we only have to bear in mind some key rules, being stick with them and that’s it. Only goal is being disciplined mentally and intellectually.

1. Create wealth is not horse race it takes times
Plan for a long term and forget the 1, 5, 15, 30, 1 hour charts. There is no way you cannot make real money in short terms. Short term is much more casino than real investment. Just look at W. Buffett, J. Livermore or G. Soros neither of them are day traders. The only secret is the time. Honestly I made my nicest profits when I was patience and waiting long enough time. My biggest mistakes was when I cut my winning positions too early.

2. The debt/credit is the biggest financial problem
Live like a monk when you start investing, being focused and not wasting your money for idiotic gadgets and staffs. If you do you will act in same way on the markets too. Don’t do that. Keep your money tight and think twice when you start to buy something. Your capital is your insurance. If you lose your capital you lose your change to make more money. Be cautious.

3. Forecasting is close to impossible and dangerous.
If you start to forecast the market, that makes you overconfident and blind. You will ignore the risk side of trading and take too much risk because you are confident about your prediction and you cannot imagine you could be wrong.

4. Simple can be better than smart.
Make it simple. Don’t make the trading overcomplicated and don’t get in and get out to often. Just buy and hold it tight. In the last 10 years you could make more than 90% on SP500 but 96% of hedge fund they massively underperformed the SP500. Cause they wanted to be smarter than the market does. The easiest and simplest trading tactics are working. Good trades run by good traders purchased at good prices held for as long as possible. That's it.

5. The volatility is part of the business
Most of investors think if the market is volatile it is abnormal. No, and again no. This is the part of the business. You have to be prepared for that and use it as an advantage. That is normal pace of the markets. In the last century the yearly volatility of SP500 was 23%. It is severe, but general gain was 6% per year. The market was bullish but with thousands of corrections, don’t be scared about the corrections.

Everything in all these five rules is only part of my rules, but some of them protected me from big losses and some of them helped me making nice profit. What is the one word conclusion? Invest and wait. That is the wisdom.

Take a look at our Swiss fund and begin to invest with us!

The BFM Assets Team.