What is the Number 1 Investing Rule

[Mika]

When you want to ask for investment advice from investors, a lot of people will tell you a lot of things that will confuse you even more. However, the most important lesson you need to learn is

“Your mind needs to be stronger than your feelings.”

Let me explain.

Start thinking about every poor decision you have ever made in your life, you will find there were more emotions involved than your mind. Making decisions from the mind means you are being rational. Making decisions based on feelings means, you are being emotional. The feelings will keep you in bed, your mind tells you to get up.

Every single day, your mind will tell you to get up and your feelings will tell you to roll on extra 30 minutes, your feelings will tell you to continue to roll on and not to worry about anything.

Emotions are important to balance your personal life. However, when it comes to profit from the market, you need a rational mind.

 

[Jasmine]

Once Bill Gates was asked, why he is not investing in Bitcoin like every other big entrepreneurs. He said he will be investing only on things that will help people, the will improve people's lives. According to Bill Gates, Bitcoin and all other crypto currencies do not help people, do not improve people's lives. Maybe Bill Gates is right. Few months ago, Bitcoin was $40K and now it has halved. If you compare the current price of Bitcoin with the all time high price, you will see bitcoin has gone down by more than 300 percent. Did Bitcoin actually improve people;s lives. Therefore, in my opinion, when you are investing, you should invest in something that improves people's lives, helps people, etc. Why should you invest $1000 in Bitcoin, when you can buy Tesla stocks for that amount. Tesla is a better company than Bitcoin because Tesla improves people's lives.

 

[Shaf]

Everyone has their own rule when it comes to investing especially those who have been at it for a decade or more.

My husband has done so, and one rule he always abides by is that he never invests in anything that is online. To him, none of that is secure. It may seem silly to others, but it works well for him and he's able to own three rental properties as a result of this.

My own investing rule is that I never invest more than I can afford to lose in any business no matter how much money I have. I do diversify because of this and anytime I put all the money I have in one business, it fails.

Some people will not invest in a business they believe is ethical due to religious beliefs or personal standards. Some people hate investments that only bring small profits.

You may have to try often to find what suits you best. You can also learn from others so you don't repeat their mistakes.