1. Do not risk money you can not afford to lose
It may seem obvious, but when you have the necessary capital to endure highs and lows of the trend, it is better to head to safer options like bonds and cash.
2. do not trade with money that you will need
This applies to instruments with maturity, such as bonds, to be liquidated in order to have access to money.
3. Understand and study well what buy
If you do not understand a product, do not buy or seek advice from professional advisers. Very complex instruments have looked high exposures.
4. not base their investment decisions on rumors and on top of the trend
This condition does not apply in perfect timing for entry into positions, but too many investors come on top of the trend and incur large losses.
5. Invest, not speculation
In fast-moving markets, the risks are very high and investors need to be constantly alert and market very carefully, especially in short-term investments. Longer term reduce such risk and accumulate higher returns.
6. Do not sell in panic
If the market goes in the opposite direction or suffered a collapse in sales of low levels only bringing its loss. Often, the best solution is to wait for reversal and stabilizing the market.
7. Do not be sentimental
Do not you hold one share or investment itself “loyalty” to it. If the company is not doing so well as a time, do not follow it blindly and sell.
8. diversify as much as you
You need to ensure you’ve got a well diversified portfolio, such as stocks, bonds, commodities, real estate, etc. Offsetting the level of risk that you take.
9. Do not trade with flock
Sometimes the biggest profits are made when avoiding mass purchases or sales.
10. Take advantage of tax breaks
Trader Georgi Bozhidarov