1. Never force a trade.
2. Write down or remember why you bought each stock in the first place.
3. Don’t sell one of your stocks right before an earnings announcement without good reason.
4. Diversify. But don’t over diversify. Have technology, a streaming company, miners, or a mining index, America 2.0, new retail outlets or restaurant chains. Have stocks in at least 4-5 different sectors.
5. I’d avoid a dividend only approach with little capital. Watch for dividend traps.
6. Know what you own and do your homework on stocks you buy daily.
7. Speculate with options.
8. Know what the numbers mean: P/E, EPS, free cash flow, P/B, etc.
9. The market is neither efficient nor is it rational.
10. Keep your head. Be ready for anything. There is no reward for panic selling. Don’t get big headed. Don’t be fooled by marketers, political activists, or fake news outlets.
1. Pay yourself first.
2. Work to learn.
3. Never chase.
4. You are never alone.
5. There is no excuse to be bored.
6. Have a plan.
7. Be wary of mind control and propaganda.
8. Turn paranoia on and off.
9. Keep your MasterMind group closed to outside influences.
10. Have bulletproof self-esteem.
From, The Black Book of the Master Mind 4th edition.
The success of a business can be predicted to the degree these five commandments have all been met.
1. The Commandment of Need
There must be a demand / need for your product or service. If your product is better, cheaper, or faster this enhances demand for customers in the industry / niche.
2. The Commandment of Entry
The cost required to enter a market must not be so low that absolutely anyone can do it.
3. The Commandment of Control
The entrepreneur must have control over all aspects of the business or be at the mercy of partners, landlords, vendors, hosting, payment processors, their bank, affiliate partners, distributors, etc. Affiliate marketers and MLM reps have very little control.
4. The Commandment of Scale
Scale deals with the ability to replicate the firm’s products either physically or digitally (mass production.) If scale cannot be achieved, magnitude (higher price) could compensate. Franchising can be used to achieve scale.
5. The Commandment of Time
If a business can function without the presence of the entrepreneur, this implies an adequate system is in place. If the entrepreneur must work 16 hour days, the commandment of time has not been met.
From the book, The Millionaire Fastlane, by MJ Demarco.
1. Money is knowledge. Become more financially literate than salespeople.
2. Learn how to use debt. Good debt puts money in our pockets and bad debt take away money from us. Hence, taking up good debts is a form of leverage, putting more money into our pockets. At the same time, we must avoid bad debts. Our bad debts make other people richer.
3. Learn how to control cash flow. The value of assets rise whenever money flows to them.
4. Prepare for bad times and you will only know good times. Dr. Kiyosaki gives the example of the Bible story of Joseph’s dream of seven bad years. (If you’re prepared for bad times this makes business expansion easier, as people will sell at fire sale prices.)
5. The need for speed. Don’t get paid by time (linearly). Get paid exponentially and from investments.
6. Learn the language of money. Have a rich person’s vocabulary, not a poor person’s vocabulary.
7. Life is a team sport, choose your team carefully. Tap the knowledge and resources of different experts who know you.
8. Since money is becoming worth-less and less, learn to print your own. Your money has to grow faster than inflation.
Ten Fundamental Laws of Economics, from Mises dot org
- Production precedes consumption.
- Consumption is the final goal of production.
- Production has costs.
- Value is subjective.
- Productivity determines the wage rate.
- Expenditure is income and costs.
- Money is not wealth.
- Labor does not create value.
- Profit is the entrepreneurial bonus.
- All genuine laws of economics are logical laws.
The Universal Laws of Business, by Brian Tracy
The Law of Purpose – The purpose of a business is to create and keep a customer.
The Law of Organization – A business organization is merely a conglomeration of people brought together for the common purpose of creating and keeping customers.
The Law of Customer Satisfaction – The customer is always right (until they are wrong.)
The Law of the Customer – The customer always acts to satisfy his or her interests by seeking the very most good at the lowest price.
The Law of Quality – The customer demands the very highest quality for the very lowest prices.
The Law of Obsolescence – What is, is already becoming obsolete.
The Law of Innovation – All breakthroughs in business come from innovation, from offering something better, cheaper, faster, newer, or more efficient in the current marketplace.
The Law of Critical Success Factors – Every business has 5 to 7 critical success factors, the performance of which determines the success or failure of the enterprise.
The Law of the Market – The market is where buyers and sellers of products and services meet to set prices and determine the allocation of money, labor, natural resources, and all factors of production.
The Law of Specialization – To succeed in a competitive marketplace, a product or service must be specialized and excellent at satisfying a clearly defined need of the customer.
The Law of Differentiation – A product must have an area of uniqueness that makes it stand out from its competitors if it is to succeed in the marketplace.
The Law of Segmentation – Companies must target specific customer groups or market segments if they aare to achieve significant sales.
The Law of Concentration – Market success comes from concentrating single-mindedly on selling to those customers for whom the products differentiation is the most valuable and important.
The Law of Excellence – The market always pays excellent rewards for excellent performance, excellent production, and excellent services.
(From, The Universal Laws of Success and Achievement, by Brian Tracy.)