Harry Browne's 17 Golden Rules of Financial Safety
These focus on financial security, not maximizing profits. From: https://thetaoofwealth.wordpress.com/2013/02/17/harry-brownes-17-golden-rules-of-financial-safety/
- 1.Career: Your career provides your wealth.
- 2.Your wealth may be non-replaceable. Don't assume that you can replace your wealth.
- 3.Investing vs. Speculating: Recognize the different between investing and speculating.
- 4.Forecasting the future. No one can predict the future.
- 5.Investement advice: No one can move you in and out of investments consistently with precise and profitable timing.
- 6.Trading systems: No trading system will work as well in the future as it did in the past.
- 7.Operate on a cash basis. Don't use leverage.
- 8.Make your own decisions. Don't let anyone else make your decisions.
- 9.Understand what you do. Don't ever do anything you don't understand.
- 10.Diversification: Don't depend on any one investment, institution, or person for your safety.
- 11.Balanced portfolio: Create a bulletproof portfolio for protection.
- 12.Speculation: Speculate only with money you can afford to lose.
- 13.International diversification: Keep some assets outside the country in which you live.
- 14.Tax Shelters: Beware of tax-avoidance schemes.
- 15.Questions: Ask the right questions.
- 16.Enjoyment: Enjoy yourself with a budget for pleasure.
- 17.When in doubt... Whenever you're in doubt about a course of action, it is always better to err on the side of safety.
The rule of life
The rules of safe investing are little different from the rules of life: recognize that you live in an uncertain world, don't expect the impossible, and don't trust strangers. If you apply to your investments the same realistic attitude that produced your present wealth, you needn't feat that you'll ever go broke.