The Three Rules of Investing

Simple Rules to Reduce Turmoil and Adapt to an Ever-Changing Market

Having a plan is key to managing any situation. We know that no indicator is perfect, past performance doesn’t mean Jack, and no strategy guarantees a profit or prevention from loss. A mathematical risk rating helps balance risk by creating a critical exit point for down markets.

1. Have a Plan for Up Markets. Go with the market when it’s working. Let your winners run.

2. Have a Plan for Down Markets. Eliminate investment vampires and zombies. Addition by subtraction.

   

3. Have a Clear Way to Know the Difference. Mathematically defining trend and risk eliminates opinion and emotion. A research-based, data-driven, market-tested approach creates a repeatable process.

Creating a stable and rewarding investment journey involves knowing and executing the three-part plan for navigating real-world investment realities. With the right approach, you can turn the market’s ups and downs into opportunities for growth and success.

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See also:

Your Guide to Getting Off the Financial Roller Coaster

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