1. Always follow a system, despite your emotions.
2. Use an objective financial advisor or coach to keep you on that system.
3. Learn to think contrarily; don't buy more high and sell more low.
4. Don't chase the hottest investments based on performance alone.
Understand the past risks associated with the returns of each
investment and how they differ in varying economic cycles.
5. Always diversity among at least four different investment sectors that
have relatively low correlation in both up and down markets.
6. Understand your risk tolerance and income needs, and don't commit
to a portfoliio strategy that is likely to violate your personal limits in
risk.
7. Focus on diversified sectors that are favored by projectable mid- to
long- term trends within your time horizon.
by Harry S. Dent, Jr. The Next Great Bubble Boom copyright 2004
2. Use an objective financial advisor or coach to keep you on that system.
3. Learn to think contrarily; don't buy more high and sell more low.
4. Don't chase the hottest investments based on performance alone.
Understand the past risks associated with the returns of each
investment and how they differ in varying economic cycles.
5. Always diversity among at least four different investment sectors that
have relatively low correlation in both up and down markets.
6. Understand your risk tolerance and income needs, and don't commit
to a portfoliio strategy that is likely to violate your personal limits in
risk.
7. Focus on diversified sectors that are favored by projectable mid- to
long- term trends within your time horizon.
by Harry S. Dent, Jr. The Next Great Bubble Boom copyright 2004
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