5 Basic Rules
There are 5 basic rules I follow when it comes to investing in stocks:
- Only invest if you have a rolling 3-to-5-year time horizon of when you think you might need the money
- Have reasonable expectations (aka: don't be greedy)
- Do your research
- Be patient
- Be willing to sell when the fundamentals driving that stock turn negative
One of the biggest lessons I have also learned along the way is that more than likely 5 minutes after you buy a stock, there is a strong possibility that the stock price will go down and 5 minutes after you sell it, there is a stronger possibility that the stock price might go up.
The moral of the lesson is: It's what happens during the time you hold the stock that matters (see rule #2).
David J. Angas, CEA®
Senior Financial Advisor, Certified Executor Advisor
Family Wealth Counsel Advisor Group/Raymond James Ltd.
