The following is a guest post. Jay Delaworth is the founder of Intelligent Trend Follower, where each week you can get actionable investment ideas and free educational content designed to help you apply a rules-based framework to limit risk and reduce stress in the stock market.
When you were a kid, did you follow the rules?
Did you clean your room, wash your hands before dinner, and always play nice with others?
It’s funny, as children, we are constantly told to obey all kinds of rules. Then, as we grow up and acquire our independence, the shackles of rules slowly loosen their grip.
We get more freedom, more leniency and more trust. Suddenly, you realize you’re an adult who can do whatever you want, whenever you want (so long as you don’t break any laws).
But why does this matter?
Well, let me put it this way:
- Do you ever look at your investment portfolio and wonder why you own some of the stocks in there?
- Do you ever scratch your head and wonder whether you should buy, sell or hold?
- Have you ever bought a stock based on a tip or news story, only to end up unsure what to do with it?
The reason I ask is because I believe these common errors can easily be avoided. All it takes are a few simple rules you can use to make better investment decisions. So in this blog post, I want to show you why (and exactly how) you can start using rules to help your investing.