10 Key Investing Rules for 2020

Posted On January 6, 2020 12:50 pm
By: Steve Smith

Every turn of the calendar brings new predictions, promises, and platitudes on how to be a better or more successful investor in the coming year.

Lucky for us, most of these ideas or rules haven’t changed over time so there is no need to learn any new “tricks” or skills. Just being reminded of some simple concepts and basic behaviors should be sufficient enough to allow most investors to navigate whatever the market throws at them.

1. There Is No Reward Without Risk

Many people operate under the assumption or are led to believe, that through practices such as diversification, portfolio protection, hedging, etc. that risk can be eliminated.

But there’s an old saying, “Risk can be quantified, assumed, bought, sold, transferred, created, subordinated, reassigned, split, delayed, diluted, fragmented, hedged against, and laid off. Risk can respond to some methods, but it is still a risk, and is near impossible to eliminate.”

Enticingly high yields. Smooth returns. Sophisticated ‘black box” systems. These are just a few of the siren songs that can lead investors astray.

Take a… Continue reading at StockNews.com

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About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.