Root In People - Not Things

Avoid putting down psychological roots.

Do not become tied to a speculation because of misplaced loyalty. If you drive a Chevy, you don't have to keep your GM stock. In fact if you work for GM you probably don't want to own any of their stock. With your pension and your job there - you need to diversify away from the company.

This warning is probably too late for GM employees, but the advice holds with any company that you might work for,

Don't marry your investments, they don't love you.

The stock does not know you bought it, and will not care that you sold it. Take small losses and find better ventures.

Time = Money, don't put them on hold. Never hesitate to abandon a deal if something more attractive comes into view. Jump at the better looking venture.

Don't let short term blips distract you from a formulated goal; know the volatility of an investment before you purchase it.

In fact study your speculations before you enter them. Always buy the book before the speculation.

Let me suggest the Market Wizards books, buy all three at once - once you read the first you will want to read the other two.

On any speculations you make - don't put down roots.

Remember that basic speculation rule :

Cut losses short - let profits run.

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