This is one of the most valuable article I found in my research. So I thought to share it with you all as it is worthy. Hope this article will help you to take same good decisions in investing.
It's overall theme is :
Principle 1 :
Always Invest with a Margin of Safety.
Principle 2 :
Expect Volatility and Profit from it.
Here are two strategies that suggested to help mitigate the negative effects of market volatility:
a) Dollar-Cost Averaging.
b) Investing in Stocks and Bonds.
Principle 3 :
Know What Kind of Investor You Are.
i.e; a) Active Vs. Passive.
b) Speculator Vs. Investor.
- Speculators are typically sophisticated, high risk-taking investors with expertise in the market(s) to which they are trading and will usually use highly leveraged investments such as futures and options.