One is to believe in history. History will repeat itself, and if you forget this one, you will be in a dangerous situation. All bubbles will burst, and all investment craziness will disappear. The task of investors is to survive market volatility.
Second is not to be a borrower, nor a lender. If investors borrow money to invest, it will interfere with investment capabilities. Investment portfolios that do not use leverage will not be liquidated, while investments that use leverage will face this risk. Leverage will impair the patience of investors themselves. Although it temporarily increases investor returns, it will eventually be destroyed suddenly.
Third is not to put all your assets on the same boat. Allocation of investment in several different areas, and as many as possible, this can increase the resilience of the portfolio and enhance the ability to withstand shocks. Obviously, when investment targets are numerous and different, investors are more likely to survive the critical period when their main assets fall.
Fourth is to have patience and focus on the long-term. Investors must wait patiently for a good card. If the waiting time is long enough, the market price may become very cheap. This is the margin of safety for investors to invest.
Edward Egendoerfer :
Howardy : Diversified investment is particularly important