CHAPTER 23RULES TO LIVE BY

Over the years, I’ve had many people ask me what I think the most important rules are to investing. I’ve always responded that some of the most basic investing rules could apply to just about anything in life; some are old adages, and only a few are new or surprising.

Bob Farrell’s rules (see Chapter 3) are the best place to start. Here are a few other suggestions.

Document Your Important Decisions

Document each buy or sell decision that you make. The best way is on paper. The second-best way is to save screenshots in a static format (PDF or PostScript, for instance, or through the screen capture feature). Write a paragraph to go with each screenshot. Save it in a folder. Name the folder something logical (such as “YYYYMMDD ...

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