The Ten Harsh Financial Commandments

Mike Batnick is the head of research for RWM; His tumblr is an outstanding assortment of real time analysis, data and perspectives.

This was one of my favorite pieces of his:


The Ten Harsh Financial Commandments

I) You will not buy low or sell high.

II) You will cut your winners and let your losers run.

III)  You will wish you owned more of what’s going up and less of what’s going down.

IV) You will be fearful when others are fearful.

V) You will fight the trend.

VI) You will not buy when there is blood in the streets.

VII) You will spend too much time worrying about low probability outcomes.

VII) You will invest for the long-term, or until we get a ten percent correction, whichever comes first.

IX) You will go broke taking small profits.

X) You will not just sit there, you’ll do something.


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What's been said:

Discussions found on the web:
  1. gordo365 commented on Jul 2

    Ouch. Have you been studying my portfolio?

  2. bear_in_mind commented on Jul 3

    Wow, I used to resemble that remark. Much less so now, after years of reading, studying and testing theses. Trading is what gets me in trouble, not investing.

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