Principle 1: It's your hard earned money
It is YOUR hard eared money - don't lose it on speculative buying!
Rule No 1 - Never lose money
Rule No 2 - Never forget Rule No. 1
Principle 2: Invest, not Trade
There is a big difference between trading and investing. When you trade regularly, you are competing against funds who do it for a living and have billions at their disposal to take YOUR hard earned money. Now what are your chances here ?
Principle 3: Do your homework
Investment is the way to go! As Warren Buffet says, you are buying a part of the company when you buy shares so do your due diligence. Ask all the right questions, is this company valuable to people at large, are they run by people with strong record, great vision and ability to execute ? Look at their financials ( EPS, P/E etc)
Principle 4 : Index funds
It's best to invest in low cost S&P funds. Chances are that you will do better than most of the hedge funds and individual stock traders.
Principle 5: Buy low and Sell High
Invest for long term - Your horizon should be a good 10 years. That way you can ride a downturn as opposed to buying high and selling low in case you need the money
Principle 6: Take profits
It's always good to take profits every now and then , don't be "too" greedy.
Principle7: $$$ Cost Avg
Remember life is all about timing and you can never time the market for buying or selling so do the next best thing, which is Dollar Cost averaging to build your wealth. Take 10% every month and invest in the same fund or fundamentally strong large caps like Microsoft, Apple, P&G, Berkshire - B . Your upside may not be a Tesla one but it is the best way to take emotions out of investing and build wealth long term.
Principle 8: Diversify
You can still try to identify the next Tesla or Amazon but needs infinite patience, some luck with timing. I would put 5% of my investment in identifying these which can give me 2000% fold return but be ready to lose that 5% anytime.
Principle 9: Discipline
Investing is also a big addiction so create a discpline around investing. Decide how much money you would like to invest and how. Stick to that plan without emotions. Big risk, big reward but if you dont have the stomach to digest losses, do not take those risks. Its always good to be safe with your money, your hard earned money to secure your today and future!!