| Investing is not a get-rich-quick drama. Investing is a | | | | a market slump. Be emotionally neutral when deciding |
| plan, often a dull and almost mechanical process of | | | | on investments. |
| getting rich. Before starting out as an investor, you | | | | Fifth rule: Don't try to predict when and what will |
| should commit the following Seven Rules of Investing | | | | happen. Investing is a skill, not a science. A |
| to memory. If you follow them as you invest, they'll | | | | swordsman acts spontaneously; he does not |
| guide you on the straight and narrow path towards | | | | anticipate the moves of an opponent, for that |
| riches. | | | | impedes his ability to react. |
| First rule: Know what type of income are you | | | | Sixth rule: Trust that when a profitable deal comes |
| working with. Are you investing with earned, | | | | along, its funding will also be available. Good investors |
| portfolio, or passive income? Your results and | | | | know a money-spinning deal when they see it, and |
| strategies will be different based on this. | | | | financial backing arises from the prospect of success. |
| Second rule: Focus on converting earned income into | | | | Likewise, if respected investors are not accepting a |
| portfolio income or passive income as quickly as you | | | | deal, the lay investor should step back. |
| can. Doing so will put your money to work for you | | | | Seventh rule: Risk is relative. Learn to understand a |
| and enhance the chances of your funds growing. | | | | company's financial statement, evaluate a business |
| Third rule: Purchase securities with the returns of | | | | system, or take the pulse of the stock market. |
| passive income sources. Securities are generally | | | | Doing so you will buy assets rather than liabilities. Risk |
| bought to serve as assets, but they sometimes lose | | | | is linked straight to reward, so to become wealthy |
| value and turn into liabilities. An educated investor | | | | one must be able to invest more aggressively than |
| buys securities with good RoI. | | | | someone who's content to be secure. Better financial |
| Fourth rule: Buy undervalued securities in a bear | | | | education implies less risk. |
| market. Don't lock in losses on a stock by panicking in | | | | |