TEN GUIDELINES
FOR A STELLAR PERFORMANCE
1. UBUNG MACHT DEN MEISTER (Practice makes perfect)
First, practice investing and trading, rather than using/losing real money.
2. STOCK MARKETS HAVE HOROSCOPES, STOCKS HAVE HOROSCOPES
Most of a stock’s price movement can be attributed to the broad market and
sector participation. Plan top down: First select countries/bourses/currencies,
then sectors, then individual stocks. Bottom up investing should be
reserved primarily for special situations.
3. TIMING IS EVERYTHING
It is not what you know, but when you know it! I use astrology to “be
there first.”
4. 2/3 AIN’T BAD
When investing, I use fundamentals and astrology; when trading I use technicals
and astrology.
The best results, i.e. most profitable, occur when several investing criteria,
gurus or screens agree.
5. WHEN IN DOUBT, DON’T
Even when we are “sure”, I am not always right (and I am a Leo!). If
you are not sure, do not act unless necessary.
6. MAKE MISTEAKS
Nothing ventured, nothing gained. If you are never wrong, you are a newbie,
a liar or a con artist. Learn to take losses quickly – the moment you recognize
that the market is telling you that you are wrong.
7. DANCE WHEN THE MARKETS ARE WRONG
Trading and hedging can be used to hold long core positions without giving
up too much.
8. LIVE ON THE EDGE
Find your own edge or personal knowledge that is not priced into the market.
Often, it is from your life experience. For me, astrology is my edge.
Similarly, wear your portfolio like comfortable clothing- buy stocks that
are you are comfortable owning.
9. KNOW WHEN TO HOLD THEM, KNOW WHEN TO FOLD THEM
Know in advance your exit strategies. Most investors know how to buy, but
few haven’t learned how and when to sell. I believe that when a stock is
more expensive than you are currently willing to pay for it, place a trailing
stop or sell it.
10. MAKE A PROFIT- DON’T BE A PROPHET
Use prudent money management and capital preservation. Never let one
or two bad investments destroy your portfolio; diversify it sufficiently
to manage risk and reward appropriately.
Read my top ten rules for a stellar performance again along with invaluable
advice from 149 other master investors in INVESTING RULES edited by Philip
Jenks and Stephen Eckett and just published by Global-Investor in the UK
and now available from our
AFUND online bookstore
for $40 plus Shipping and Handling.