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My Golden Rules for Investment

1. Look before your Leap- Research the product or company you want to invest in before placing a stake. The more you know about a company or product, the less risky your decision will be.
2. Be the Driver- Don't give your money to others to invest on your behalf . Be it #forextrading, #crytocurrency, #stocktrading and the likes; make sure you have direct access to the trading platforms and take the decisions yourself. If you like, you can subscribe to buy and sell signals but ensure that you are the one that pulls the trigger of your investment decisions.
3. Invest what you can afford to lose- when venturing to new investment vehicle, don't dump all your fund into new #investment, which you have little or no experience of. The truth is, the higher the promised returns, the higher the risk.
4. Avoid Ponzi Scheme - investment that promise extraordinary returns without real clear-cut business model like #MMM and #mbaforex should be avoided. It is only a matter of time for them to crash. In the first place, the market is efficient, if the business is that profitable, it shouldn't be only that #wonderbank running the investment. Be wise!

5. Cut your loses and Move on- when your investment is nose-diving into loss territory, know when to cut your loss and move on. Better to cut the loss than hoping and praying for things to turnaround in your favour. A stitch in time saves nine!
6. Optimize and not Maximize your Gains- when your investment is in green territory and all the way bullish, learn to optimize rather than maximize profit. Waiting to catch the maximum might make you to lose the opportunity to cash in on the profit. Learn to manage your #greed appetite.
7. Use OPM Strategy- OPM simply means Other People's Money. OPM strategy works like this, when you make good money from the market, withdraw your capital/principal as soon as possible and then leave your gain in the market to continue with the money making game. Once you are at the OPM level of investment, you have nothing to worry about.
8. Don't follow the crowd- When your house-help, security man, bus-conductors, market women and the likes start advising and talking about investment in #shares #crytocurrency #forex and other financial products know that the market is about to crash. When they are rushing in, you should be cashing-out, that's the way it goes!
What are your own rules for investment? Share your thought.