| >RULE 1: WHY DO YOU INVEST? | | | | 4.Assuming that the tip is true, would you possibly |
| Make more money, this is the answer to most | | | | know about it? |
| people. | | | | Normally insider news is not disclosed. |
| If your reason is to make more money, then ask | | | | RULE 7: SELL YOUR STOCKS EVEN LOSING MONEY |
| yourself these three questions: | | | | It is easier to be said than done. |
| 1.Is your strategy making money? | | | | Sell at a loss is a difficult decision. Your heart will |
| 2.Is your strategy safe? | | | | object, and your feeling will say "It is going to |
| 3.How to increase the profit and minimize the risk? | | | | rebound, don't sell." Eventually price dropped further, |
| RULE 2: HOW TO CREATE WEALTH IN STOCK | | | | causing a much tragic lost. |
| MARKET WITH JUST $1,000 | | | | RULE 8: DON'T JUST FOCUS ON MAKING MONEY |
| Let say we invest some lower price stocks with just | | | | How to protect your capital is much more important. |
| $1,000 in the stock market, invest twice a year for | | | | Don’t try to make 100% profit. It is already |
| short-to-medium term. If each time the return is | | | | good enough to have a 60% profit margin. |
| double, you will make one million dollar cash within 5 | | | | RULE 9: HISTORY WILL NOT ALWAYS REPEAT |
| years. If your starting capital is $20,000, after 3 | | | | Everyone expects to make some money from the |
| years you will make one million dollar cash. | | | | stock market before Christmas, New Year, annual |
| If you are using the same $1,000 capital, invest twice | | | | budget announcement or election, but the stock |
| a year, but the return is only 50%, you will make one | | | | market is not always bullish during these events. We |
| million dollar cash after 9 years. | | | | can say history is not always repeated. |
| So we can always start small. However, it is very | | | | The best way is Let the Market Lead us. |
| important that we know how to select high profit | | | | RULE 10: QUOTES FROM WARREN BUFFET |
| and low risk stocks. | | | | There are only two rules to make money in stock |
| RULE 3: DON'T GET OBSESSED WITH STOCKS | | | | market: |
| Sitting and monitoring the market whole day long will | | | | The first rule: Never lose your money. |
| not bring you profit. Instead, it increases pressure | | | | The second rule: Never forget the first rule. |
| and misleads your judgment. | | | | RULE 11: TURN BAD STOCKS INTO GOOD STOCKS, |
| RULE 4: NEVER GAMBLE | | | | DON’T JUST HOLD YOUR STOCKS |
| 95% of the people always buy at the highest price. | | | | Don’t hold your stock too long, there is a |
| They don’t really know when to buy, just | | | | value when stocks are sold. |
| relying on news, rumors and tips. Only 5% of the | | | | How long have you been holding your stocks until |
| people knows how to trade at the lowest price. | | | | now? |
| That’s why 95% are losing money, only the | | | | Since Year 1993? 1997? Or Year 2000? |
| 5% are making money. | | | | Why didn't you exercise your stocks? Long term |
| Investment Builds Wealth, Gambling Definitely Lose ! | | | | investment strategy is not practical anymore. Even |
| RULE 5: SAY GOODBYE TO NEWS | | | | the blue chips also crash when the market collapses. |
| News used to be able to predict the market trend. | | | | The best strategy is to sell the stocks that are not |
| But not anymore, it is difficult to judge which news | | | | earning money, and reselect some good counters. |
| could actually influence the market nowadays. | | | | Buy low, sell high for several times will earn you more |
| RULE 6: DO YOUR OWN ANALYSIS, FORGET | | | | than enough to compensate the lost. |
| ABOUT TIPS | | | | RULE 12: WAKE UP FROM MISTAKES |
| Before investing, ask yourself these four questions: | | | | Stop investing if you are not sure of when to buy or |
| 1.How many people have already heard about the | | | | sell. |
| tips before you? | | | | Without the knowledge of investment, you are |
| If many have heard about it before you, this news is | | | | bound to lose again. This is an age of information. |
| already obsolete. The price is already high. | | | | Investors are using knowledge, techniques and |
| 2.How long have the tips been spreading before it | | | | strategies to make money. Without investment |
| reaches you? | | | | knowledge, how do you protect your money? |
| The next day? | | | | Building wealth through investing starts with securing |
| 3.Who told you? | | | | your capital. |
| Listed company director? Or friends? | | | | |