RULES OF ENGAGEMENT

If you have read my previous blog, and decided to invest with your money.
Please hold on and read this blog before investing.

RULE OF ENGAGEMENT

Point 1: Have a fall-back/backup fund.
Keep a 6-month of your salary which is easily accessible.
If you happens that you lost job, you have 6-months of buffer to work with.

Point 2: Know the financial instrument you are investing.
May it be stocks, funds, gold, forex, you must know the pro and con.
And more importantly the risk involved.
Key thing is - do your homework and do not follow blindly.

Point 3: Invest within you limit.
Many investment tools have leverage.
For example, you can buy $100,000 stocks with a fraction of the money needed.
The good news is that it helps to multiply/increase the profits.
However, it is a double edge sword. It multiply the loses as well.

Do not eat what you cannot swallow.

Step 4: Have a strategy and Control your own emotions.
Many people made some profit some investments as the follow the rules or strategy.
Slowly they come complacency of their own success.
This clouded their mind to invest intelligently and lead to their downfall.


Finally, remember, you are investing not gambling.