A very helpful reminder of 10 timeless investor rules is offered in the following charts and article see Visualizing Bob Farrell’s 10 investor rules:
“…these rules will benefit investors by helping them to look beyond the emotions and the headlines. Being aware of sentiment can prevent selling near the bottom and buying near the top, which often goes against our instincts.
Regardless of how many times I discuss these issues, quote successful investors, or warn of the dangers – the response from both individuals and investment professionals is always the same.
“I am a long term, fundamental value, investor. So these rules don’t really apply to me.”
No you’re not. Yes, they do.
“Individuals are long term investors only as long as the markets are rising. Despite endless warnings, repeated suggestions and outright recommendations – getting investors to sell, take profits and manage your portfolio risks is nearly a lost cause as long as the markets are rising. Unfortunately, by the time the fear, desperation or panic stages are reached it is far too late to act and I will only be able to say that I warned you.”
No truer words were ever spoken.