1) Emphasize never losing money and understand that.
2) Understand and implement the core principles of asset allocation, keeping in mind that market trends change and yesterday's winners might be tomorrow's losers.
3) Look for opportunities with different potential risks and rewards—preferably where the potential for reward exceeds the risk potential.
4) Broadly diversify investments to avoid over-concentration in any particular sector or investment type.
5) Pay close attention to the fundamentals of equities investing. Monitor financial indicators like earnings, growth potential, book value, price-to-earnings ratios, company balance sheets, and cash flows.
6) Keep a long-term perspective on investments and define succinct goals, such as income, growth, or a combination thereof.
Dana