#4. NEVER LOSE MONEY!!
The 'psychology of the investor' is more important than the investment!
Greed is the achilles heel of the American Capitalistic System. Just because
you can make it, doesn't mean you have to.
We have a recession every 8-9 years. This is predicable in our Capitalistic
System. Better to have a conservative (NO LOSE) strategy that let's you
sleep at night than be on a roller coaster ride with you savings and investments.
Always tell your adisors that you never want to lose more than 10% in any one year.
Never. This means you'll make less on the way up, but you'll lose less on the way down.
Market top was 1565. Recent market bottom was 677. That's a 56% loss. To get back to
1565 your portfolio would have to gain 131%!!
You do the math. The average investor never gets ahead because the average investor
turns his or her portfolio over to an amateur...a person who has little or no Wealth themselves.
Think on this
Dr. Mike Schuster
Saturday, September 12, 2009
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