Funds Investing

This one is simple. Don’t invest with vengeance in your heart or any heated emotion driving your decision-making. Wrath, envy, and vanity are three of the sins that can cause you to invest in highly emotional states. You need to be aware of your emotional temperature when considering an investment, and if you find yourself upset, thinking about getting revenge, or furious at friend, foe, or the investment vehicle itself, give yourself a time out for a day or longer. Calm investors have a far better track record than highly emotional ones, and you need to keep this in mind or you’ll become even angrier when your hot-tempered investment doesn’t pan out.

Thou shall not commit adultery chasing some flashy little stock of the moment.

As much as I repeat this commandment, I know that daily price movements seduce people into betraying their long-term commitments and go for the most attractive investment at that particular moment. To Put it more bluntly: Don’t buy something just because it’s “hot.” Once you recognize that it’s hot, you’re probably already too late. Force yourself to think long-term, even when you’re tempted by what seems to be a short-term sure thing.

Possibly related posts: (automatically generated)
Thou shall not take the name of the Lord in vain or issue any foul- tempered oaths while Investing

• The Ten Commandments of Sin-Free Investing
• Trust Law Approach and the Unit Trust Trustee
• Thou shall not worship false idols or deceitful financial advisors
• Types of Credit Risk
• The Rights of a Unitholder in Underlying Assets (the first proposition) (A2)
• Thou shall not make a killing
• Thou shall not steal from thyself by forgetting about taxes
• Thou shall not covet thy neighbor's investments
• Thou shall not make unto thee a graven image of profits
• Position of the United Trust Trustee part 1