Ten Principles of Investing

Here are the Ten Principles of Investing I've got from freeinvestmentreport.com which I found very useful to new investors.

1. Start investing now. You could be getting better returns on your money today to prepare
yourself financially for your future.

2. Make a financial plan. You must know what your goals are to be a successful investor.

3. Do not follow the crowd. When investing, do what the wealthy do and look for opportunities to
get in before the masses.

4. Don’t overpay for stocks simply because the companies behind them are large and well known.
Too many large companies are overvalued, and their prices will eventually fall back to earth.

5. Have patience when investing. Wait for the right time to enter and exit your trades.

6. Research, research, research. And if you can’t do your own research, seek advice from
experienced professionals who specialize in the markets.

7. Remember that all big companies were once small companies. Look for high-potential
opportunities in the micro cap and small cap sectors.

8. Be cautious when investing borrowed money. Your investments can fluctuate in value, whereas
the money you borrow must be paid back in full.

9. Don’t put all your money in one place. To protect yourself, make certain your portfolio is
diversified across a number of unrelated financial instruments.

10.If necessary, close out losing investments to cut your losses. Stocks do not always bounce
back.