The stock market guide to profitable investments haramis

I.E.C. Haramis

The Stock Market Guide to Profitable Investments

The Stock Market Guide to
Profitable Investments

Ioannis - Evangelos C. Haramis

A Simple and Logical Background with Everything You Need
to Always Be Able to Invest Profitably

www.GreekShares.com

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I.E.C. Haramis

The Stock Market Guide to Profitable Investments

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Copyright © 1995 - 2014 Ioannis - Evangelos C. Haramis
All Rights Reserved
www.GreekShares.com
No part of this e-Book may be reproduced or transmitted in any form or by any means,
electronic, mechanical, including photocopying, recording, or by any information storage and
retrieval system, except in the case of reviews, without the express written permission of the
author, except where permitted by law.

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“… a notable example of the mad and fond curiositie of our nature, amusing it selfe to
preoccupate future things, as if it had not enough to doe to digest the present!”
Michel De Montaigne (1533- 1592), Of Prognostications


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Money
Money permeates every relationship in life, every interpersonal interaction: friendship and
courtship, partnerships, investments, living together, marriage, divorce, death and etc!
Money is a commodity, which takes on other meanings and emotions. It becomes the
emotional football that everybody may use to throw back and forth at all others and never
resolve their real issues.
Workers earn it,
Spendthrifts burn it,
Bankers lend it,
Women spend it,
Forgers fake it,

Taxes take it,
Dying leave it,
Heirs receive it,
Thrifty save it,
Misers crave it,
Robbers seize it,
Rich increase it,
Gamblers lose it,
Stock brokers sometimes (?) multiply it ...
And WE ALL …
Always can use it!

Paraphrased (!) from Richard Armour (1906-1989)


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The Decision is Yours
"An investment in knowledge pays the best interest!"
Benjamin Franklin (1706 - 1790)
Investing is a very complicated science, so your success can ultimately come only through
further careful study of market principles.
Try to develop your investing savvy so you don't have to rely too much on the advice of
others, who may or may not have your best interests at heart!
As you might know, you don't have to be an expert in order to invest profitably.
You don't even have to really love money.

But, you will pay a high price for neglecting your finances!
During my years as a stockbroker I've seen many losers and winners. The difference was the
ability to be able to know the rules of "The Game" and adopting the right strategies to suit
individual circumstances.
There are plenty of people ready to give you advice; bank managers, accountants, financial
advisers and etc. Listen to them by all means, and read what this book has to offer.
But, at the end of the day ...
The final decision and the money will always be Yours …
And ONLY YOURS!


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The Author

Ioannis - Evangelos C. Haramis was born in Athens, Greece.
He studied Business Administration, Marketing and Economics in Greece, in the U.S.A. and
in Belgium.
He is active in the stock markets as an investor, stockbroker and consultant to individual
investors and various funds.
He is the publisher and editor of the "Learn how to Invest" -- www.GreekShares.com -- web
site and the author of "The Stock Market Guide to Profitable Investments" book.


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Aknowledgments
This book is almost twenty years in the making, and more people deserve my gratitude than
space would allow.
First among them is my wife, who saw the importance of this book long before the stock
market jargon became standard fare on the news. High also on my list are my associates who
patiently endured my distraction by this project.
Special thanks to the many lone voices who have been criticized for sounding the alarms
early on, and their attempts to "reason" the market deserve more credit that will ever be
received!
But folks let me be extremely honest now …
My biggest credit goes to the “Greater Fool Theory!”
The theory that makes a fool buy something for no other reason than the belief that he will be
able to sell it to some other greater than himself fool for a higher price!


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Foreword
With a staggering number of stocks posting tremendous gains over the last years, it was
beginning to look extremely easy to be able to make a fortune! Of course, throw in several
dives here and a few really short haircuts there, and the next thing you know ...
Your convictions are severely shaken ...

Not stirred!
There are a lot of people these days "playing" the stock markets. It can be fun, exhilarating
and sometimes, it's almost intoxicating!
But, it's not a game!
Investigate your investments …
Define your goals and objectives and …
Invest your money instead of just "playing" with it!
The purpose of this book is to provide all the necessary information so that you can acquire
new skills and expand your knowledge, in order to accomplish profitable investments in the
stock market.
If you were wondering if the good times were over and you missed them …
Think again!
It's time for a serious, profitable perspective that only comes from real knowledge.
The intention of this book is not only to provide advice on investments for beginners, but
also aims to offer fresh ideas for experienced investors. It includes advice ranging from the
best investments for young people, to how to find an honest stockbroker!
Coupled with such advice, it offers a comprehensive outline of many major terms and
important phrases that the readers would need to be familiar with upon their embarkation into
investment.
This book does not claim to give tips on particular investments, but rather aims to provide the
readers with the broad, general advice necessary to be translated into stock market success.
The logical and straightforward way in which this book is both written and organized will
enable the readers to follow the route of the advice and argument easily.
Several techniques are also been employed in this book in order to ensure that attention is
maintained throughout, including the use of catch phrases and rhetorical questions. In
addition, the author combines objective information with personal recollections and
revelations, which would have the effect of the readers being able to relate more effectively
to him, and therefore to the advice that he is offering.

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Introduction
“It is always in season for old men to learn!”
Aeschylus (525 - 456 BC)
If you have been investing for a while, you might think you have heard it all! After almost
thirty five years of investing, I sure feel that way. But every so often, I do discover a “new
trick” that makes me think about investing in a new way. Even with years of experience, you
can always pick up some fresh ideas.
This "Year 2014" edition of "The Stock Market Guide to Profitable Investments" is the
culmination of twenty years of work that slowly arrived at this present expanded and updated
version of the original book which was first e-published in English in late 1994 in the
Internet (www.GreekShares.com).
"The Stock Market Guide to Profitable Investments" is unique in the method it uses to
describe the details of becoming a stock market investor. It uses a time tested and countless
times proven, simple and logical approach.
The book is divided into ten sections. The seven first sections have a very distinct purpose,
which combined together with the tenth one that defines the investment terminology and the
eighth with its published in various Greek and USA newspapers articles, describes a logical
and complete methodology for absolute investment success.
Since the original e-publication back in 1994, investors have begun waking up to the
enormity of the new economic era, and starting to learn, using and evaluating the new market
issues that face them today.
From the point of view of investors or "suppliers of capital," investment is the commitment
of present funds for the purpose of deriving future income in the form of interest, dividends,
etc., or of appreciation in the value of the principal.

The process of investing often seeks to sharpen its meaning by contrasting it with
speculation. Traditionally, investment involves a reasonable risk with a relatively certain
future income, whereas speculation involves taking a possibly high risk.
The investor asks; what is the security worth?
The speculator asks; how will the price of the security move?
An old saying holds that a good investment is a successful speculation. The end result
determines the distinction! Such a concept is useful in that it suggests that risk is a matter of
degree and that some degree of risk is inevitable.
On the other hand, this concept is rather dangerous, in that it suggests that planning and
research may not be worthwhile.
But, we do know that the procedures by which investments originate and the operations of
the markets are important segments of investment knowledge without which the investor
cannot act intelligently!


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Here in this book, I will define the nature of investment and intelligent planning, by
providing a considerably simple and logical background with everything you need to get
started investing profitably in the stock market!


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Disclaimer
This book contains neither recommendations nor solicitations to buy or sell securities and it
is published solely for information and educational purposes and does not form the basis of
any contract or commitment whatsoever.
The author and the publisher assume no responsibilities for actions taken by readers, they do
not provide investment advice and they do not make any claims, promises, or guarantees that
any suggestions, systems, information, trading strategies and/or etc. will result in a profit, or
any other desired result.
All readers assume all risks, including but not limited to the risk of losses.
Stock market investments are risky. They do not provide fixed returns and past performances
do not guarantee any future results.
All securities investments entail the risk of great and sudden financial losses.
Returns may vary and you may have a loss when you decide to sell your securities.


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Contents
1. Money ___________________________________________________________ 4
2. The Decision is Yours ______________________________________________ 5
3. The Author _______________________________________________________ 6
4. Aknowledgments __________________________________________________ 7
5. Foreword_________________________________________________________ 8
6. Introduction_______________________________________________________ 9

7. Disclaimer_______________________________________________________ 11
8. Contents ________________________________________________________ 12
Prologue __________________________________________________________________ 21
1. The 10 + 4 ... Golden Commandments! ________________________________ 22
2. Improve Your Finances ____________________________________________ 23
3. Develop Your Own Investment Plan __________________________________ 24
4. The Ways to Make Money __________________________________________ 26
5. Think Carefully___________________________________________________ 28
6. Buy Low and Sell High ____________________________________________ 29
7. Deadly Financial Mistakes! _________________________________________ 31
8. Money Mistakes __________________________________________________ 33
9. Know Yourself ___________________________________________________ 34
10. The Decision is Yours _____________________________________________ 35
11. Investing, Human Nature and the Past 2000 Years _______________________ 36
12. Stock Market and Investing Myths____________________________________ 37
A. The Preliminary _________________________________________________________ 38
1. Understanding and Controlling Your Finances __________________________ 39
2. Evaluate Your Financial Situation ____________________________________ 41
3. The Seven Steps to Financial Freedom ________________________________ 42
4. Economics_______________________________________________________ 44
5. Financial Economics_______________________________________________ 45
6. Capitalism _______________________________________________________ 46
7. Celebrate Capitalism_______________________________________________ 47
8. Understand Your Assets ____________________________________________ 50


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9. Capital Gains ____________________________________________________ 52
10. Saving Versus Investing ____________________________________________ 53
11. Investment Philosophy _____________________________________________ 54
12. Buy Now ... Pay Later! _____________________________________________ 55
13. The Best Investment _______________________________________________ 56
14. Pay off Your Debts ________________________________________________ 57
15. Consumer Debt - Use Cash or Credit? _________________________________ 58
16. Banks __________________________________________________________ 60
17. Bank Checks _____________________________________________________ 62
18. The Stock Market _________________________________________________ 63
19. The Index _______________________________________________________ 64
20. Yield and Investing________________________________________________ 65
21. The Age Percentage Formula ________________________________________ 67
22. Understand What You Buy__________________________________________ 68
23. My Millionaire! __________________________________________________ 69
24. Money and Ethics _________________________________________________ 70
25. Analysis and Recommendations______________________________________ 71
B. The Elementary __________________________________________________________ 73
1. Trust … Who Can You Trust? _______________________________________ 74
2. Paying For Advice? _______________________________________________ 76
3. Advice on Taking Advice! __________________________________________ 77
4. Selecting Your Financial Advisor ____________________________________ 78
5. The Odds are in Your Favor! ________________________________________ 80
6. The Internet as an Investment Tool ___________________________________ 81
7. Know Your History _______________________________________________ 83
8. Realistic Expectations______________________________________________ 84
9. Investigate Before You Invest _______________________________________ 85
10. Online Trading ___________________________________________________ 86

11. What is Securities Fraud? ___________________________________________ 88
12. Internet Fraud ____________________________________________________ 90
13. Pyramids and Multilevel Marketing Plans ______________________________ 92
14. Economic Pornography ____________________________________________ 94
15. Investing ________________________________________________________ 96


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16. Growth, Yield and Income __________________________________________ 97
17. Investing Is a Business ... Treat it that Way! ____________________________ 98
18. What Should Young People Invest in?________________________________ 100
19. Women and Investing _____________________________________________ 101
20. Are You Afraid to Start Investing?___________________________________ 103
21. Starting Early ___________________________________________________ 104
22. Low Capital to Start With? _________________________________________ 105
23. Seniors and Investments ___________________________________________ 106
24. Taxes and Investments ____________________________________________ 107
25. What is Stock? __________________________________________________ 108
26. What About Dividends? ___________________________________________ 109
27. The Stock Market - How it Works ___________________________________ 110
28. Buying Stocks___________________________________________________ 111
29. How To Buy Stocks ______________________________________________ 112
30. Tracking Stocks _________________________________________________ 114
31. Blue Chips _____________________________________________________ 115
32. Bulls and Bears __________________________________________________ 116

33. Compound Interest ... The 8th Wonder! _______________________________ 118
34. The Power of Compound Interest____________________________________ 119
35. Psychology of Investing ___________________________________________ 120
36. Well Managed Risks ... Bring Rewards! ______________________________ 121
37. The Most Difficult Decision! _______________________________________ 123
38. The Investor Pact!________________________________________________ 125
39. How to Find a Stockbroker_________________________________________ 126
40. Stock Brokers' Commissions _______________________________________ 128
41. When a Broker Calls You__________________________________________ 129
42. Brokers, Traders ... _______________________________________________ 131
43. Types of Stock Brokerage Firms ____________________________________ 132
44. Bonds _________________________________________________________ 133
45. U.S.A. Treasury Securities _________________________________________ 135
46. Mutual Funds ___________________________________________________ 136
47. The Benefits of Mutual Funds ______________________________________ 137
48. Closed-End Funds________________________________________________ 139
49. Types of Mutual Funds____________________________________________ 141


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50. Annuities_______________________________________________________ 144
51. Socially Responsible Investments ___________________________________ 147
52. Aesop's Fables __________________________________________________ 148
53. Are You A Lemming? Herd Mentality________________________________ 149
54. Fundamentals of Economics________________________________________ 151

55. The Greater Fool Theory!__________________________________________ 152
56. Real Estate Investments ___________________________________________ 153
57. Retirement Investing Portfolio ______________________________________ 154
58. Retirement Investing Principles _____________________________________ 156
59. Rolling Your 401k Account ________________________________________ 159
60. The Five Investing Essential Truths __________________________________ 161
C. The Intermediary _______________________________________________________ 162
1. Pessimistic Vs Optimistic Investing Attitude ___________________________ 163
2. If You Can Afford to Lose ... You Can Afford to Win! __________________ 164
3. When Not to Invest! ______________________________________________ 165
4. Mistakes to Avoid________________________________________________ 167
5. Supply and Demand ______________________________________________ 168
6. Economic Indicators ______________________________________________ 169
7. Inflation________________________________________________________ 171
8. Central Banks ___________________________________________________ 173
9. Central Banks and Monetary Policy __________________________________ 174
10. Money Markets__________________________________________________ 175
11. Reactions to Economic News _______________________________________ 177
12. Defining Risk ___________________________________________________ 178
13. Types of Risk ___________________________________________________ 179
14. Managing Risks _________________________________________________ 181
15. The Right to Vote ________________________________________________ 182
16. The Basics of Accounting__________________________________________ 183
17. Book Value _____________________________________________________ 185
18. Financial Statements______________________________________________ 186
19. Price/Earnings (P/E) Ratio _________________________________________ 187
20. The Price/Earnings to Growth (PEG) Value Ratio_______________________ 189
21. The EBITDA Indicator ____________________________________________ 190

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22. Stock Ownership by Management ___________________________________ 191
23. Diversification __________________________________________________ 192
24. Stock Splits _____________________________________________________ 194
25. Stock Dividends _________________________________________________ 195
26. Dividends and Earnings per Share ___________________________________ 197
27. Volume ________________________________________________________ 198
28. Oversimplification and the Mutual Funds!_____________________________ 199
29. Individual Stocks or Mutual Funds?__________________________________ 201
30. No Load Mutual Funds or Exchange Traded Funds (ETFs)?_______________ 203
31. Penny Stocks____________________________________________________ 205
32. How to Invest in Bonds ___________________________________________ 207
33. Bonds: Fundamental Investment Strategies ____________________________ 209
34. Initial Public Offering – IPO _______________________________________ 211
D. The Advanced __________________________________________________________ 212
1. Panic __________________________________________________________ 213
2. Never Invest on Tips! _____________________________________________ 215
3. The Greater Fool Theory in Action!__________________________________ 216
4. The Mississippi Bubble ___________________________________________ 217
5. The South Sea Bubble ____________________________________________ 218
6. The 1926 Florida Real Estate Crash __________________________________ 220
7. The 1920 –1929 “New Era” Economy _______________________________ 221
8. The Japanese Zaitech Bubble _______________________________________ 222
9. The 1987 Stock Market Crash - Black Monday _________________________ 223
10. Speculation _____________________________________________________ 224

11. Hedging________________________________________________________ 226
12. Crash! A Hypothetical (?) Scenario __________________________________ 227
13. The Fear of Regret _______________________________________________ 228
14. Approaches to Investing ___________________________________________ 229
15. What's Your Style? _______________________________________________ 230
16. Liquidity _______________________________________________________ 232
17. Fundamental Analysis ____________________________________________ 233
18. Trading Systems and Technical Analysis Indicators _____________________ 235
19. Assumptions of Technical Analysis __________________________________ 238


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20. Portfolio Management ____________________________________________ 240
21. Investment Portfolio Mistakes ______________________________________ 242
22. The Dogs of the Dow _____________________________________________ 243
23. Cost Averaging __________________________________________________ 244
24. Value Averaging_________________________________________________ 245
25. Asset Allocation _________________________________________________ 246
26. Asset Allocation Is yet Another Way to Diversify_______________________ 247
27. Why Buy and Hold May Not Always Be the Best Strategy? _______________ 248
28. Focus Your Investments on the Long Term ____________________________ 249
29. Always Take Part of Your Profits! ___________________________________ 251
30. Never Lose more than 8% on any Stock ______________________________ 252
31. Learn to Lose and Risk Management _________________________________ 253
32. Stock Market Losers and Trading ___________________________________ 254

33. Cut Your Stock Market Losses Early and Let Your Profits Run ____________ 256
34. True Top or True Bottom? _________________________________________ 257
35. Momentum Investing _____________________________________________ 258
36. Scalp Trading ___________________________________________________ 260
37. Swing Trading __________________________________________________ 261
38. Stocks and Stock Market Gaps ______________________________________ 262
39. Buy the Dips! ___________________________________________________ 264
40. Indexation ______________________________________________________ 265
41. Moving Average _________________________________________________ 266
42. Value Investing__________________________________________________ 267
43. The Contrarians _________________________________________________ 268
44. Efficient Market Hypothesis________________________________________ 269
45. Borrowing Money to Buy Shares ____________________________________ 271
46. The Short Sale of Stock ___________________________________________ 273
47. Investing Analysis and Transaction Forms ____________________________ 275
48. Learning from Your Mistakes! ______________________________________ 277
49. Creative Accounting ______________________________________________ 279
50. Venture Capital Investments and Funds _______________________________ 280
51. Stock Fraud_____________________________________________________ 281
52. Your Investment Profile and Risk ___________________________________ 282
E. The Post Graduate_______________________________________________________ 285


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1. Hedge Funds ____________________________________________________ 286

2. Hedge Versus Mutual Funds _______________________________________ 288
3. Fund of Funds ___________________________________________________ 290
4. Commodity Trading ______________________________________________ 291
5. Sun Tzu - The Art of War__________________________________________ 292
6. Day Trading ____________________________________________________ 294
7. Day Trading Strategies ____________________________________________ 295
8. Discipline and Trading ____________________________________________ 299
9. The Seven Secrets of the Highly Successful Trader______________________ 300
10. The Day Trader’s Aptitude Test! ____________________________________ 303
11. Trading Slang and Expressions _____________________________________ 305
12. Market Manipulation _____________________________________________ 306
13. The Random Walk Theory _________________________________________ 308
14. The Beta Coefficient______________________________________________ 309
15. Stock Market Pivot Points _________________________________________ 310
16. Trailing Stops ___________________________________________________ 311
17. The Breadth of Market Indicators____________________________________ 312
18. Does Market Timing Work?________________________________________ 314
19. My Predictions! _________________________________________________ 315
20. The Size Effect __________________________________________________ 316
21. The Circle of Competence _________________________________________ 317
22. Estimates of the Future ____________________________________________ 318
23. Bubbles ________________________________________________________ 319
24. The Elliott Wave Principle _________________________________________ 321
25. Futures and Options (Derivatives) ___________________________________ 323
26. Benefits of Trading Options ________________________________________ 324
27. Calls and Puts ___________________________________________________ 325
28. The Black-Scholes Option Pricing Formula____________________________ 328
29. Viatical Settlements ______________________________________________ 330
30. ADRs (American Depositary Receipts) _______________________________ 331
31. International Investments __________________________________________ 333

32. Investing in Art __________________________________________________ 334
33. Forex __________________________________________________________ 336
34. EURO: The European Single Currency _______________________________ 338


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35. Have some Fun __________________________________________________ 339
The Articles_______________________________________________________________ 342
1. Mutual Funds - Again? ____________________________________________ 343
2. Supply and Demand ______________________________________________ 344
3. The Market's Up … The Market's Down! _____________________________ 345
4. Lacking Vision! _________________________________________________ 346
5. My Predictions! _________________________________________________ 347
6. The Cookie Jar __________________________________________________ 348
7. Mastering Fear and Greed _________________________________________ 349
8. Casino Chips? ___________________________________________________ 350
9. Irrational Exuberance (?) __________________________________________ 351
10. Abandon the Stock Markets? _______________________________________ 353
11. Good Governance - Equals Healthy Markets ___________________________ 355
12. Hard Times for Wall Street Analysts _________________________________ 356
13. Turbulent Times! ________________________________________________ 358
14. Do's and Don’ts for Protecting the Investors! __________________________ 360
15. Are Institutions Important or Needed? ________________________________ 361
16. Investing Signals_________________________________________________ 362
Epilogue__________________________________________________________________ 363

1. My Last Piece of Investing Advice! __________________________________ 364
2. The More they Change ... __________________________________________ 365
3. Persist, Persist! __________________________________________________ 366
4. Freedom!_______________________________________________________ 367
The Investment and Forex Terms ____________________________________________ 368
1. Investment Terms: A to H _________________________________________ 369
2. Investment Terms: I to R __________________________________________ 376
3. Investment Terms: S to Y __________________________________________ 382
4. Forex Terms, Terminology and Glossary______________________________ 385
Bibliography ______________________________________________________________ 388
1. Books _________________________________________________________ 389


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2. www.Sites______________________________________________________ 392


I.E.C. Haramis

Prologue

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The 10 + 4 ... Golden Commandments!
The stock market can be a great place to turn your savings into wealth!
On the other hand, if you do not keep the fundamental investment rules and do not follow
certain simple stock investing basics, you can lose your shirt.
I. E. C. Haramis says that IF:
You don't invest ... You will lose!
You don't manage risks ... You will lose!
You don't use Cost Averaging ... You will lose!
You want to play ... You will lose!
You are greedy ... You will lose!
You don't understand your finances ... You will lose!
You panic ... You will lose!
You want to speculate ... You will lose!
You follow tips ... You will lose!
You place all your eggs in the same basket ... You will lose!
You don't investigate before you invest ... You will lose!
You don't know when not to invest ... You will lose!
You can't afford to lose ... You can't afford to make a profit!
Finally, IF YOU follow what I. E. C. Haramis says in this book ...
YOU will make a profit!
That’s ALL Folks …
PERIOD!

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Improve Your Finances
There are certainly people who invest in things they understand. There are also plenty of
people who invest blindly! On the other hand, most of the people fall somewhere in the
middle; you may invest in one stock or another, but you may not fully understand them.
The "Do-it-Yourself" approach to investing is not for everybody! If you tried it and was not
working, or you are actually afraid to try it at all, or you just don't have the required skills,
time or desire, there is nothing wrong with asking for good professional assistance!
If you are serious about becoming a successful investor over the long term, you will need to
acquire the knowledge and skills, which successful investors have acquired through years of
education, experience and training.
Do you want to become a successful investor?
Do you want to improve your finances?
If so, this educational opportunity will change your life forever!
Although many investors learn the art and science of investing through trial and error, this
educational opportunity will educate, and ultimately train you how to become a better
investor.
This book is designed to offer the knowledge so that you can accomplish profitable
investments in the stock market! If you are a novice investor just starting out, or a successful
trader, this book is designed as a reminder for the experienced and a foundation for the less
knowledgeable ones.
You can all profit by picking up a few tips!
Investing in the stock market can be the most rewarding possible investment tool there is.
With the low interest rates, investors are looking for better gains. Although double and/or

triple-digit returns of the past few years are not guaranteed, there is still money to be made in
the stock market.
Many of the books written on this subject are quite hard to understand. They do not take into
account that the majority of the people do not have a Ph.D. or an MBA in Business or
Finance.
This book is mainly written for people that are searching to learn and understand with simple
and easy to understand terms.
Although it might seem to get complicated at times, hang in there! The first few parts will
explain the basics and cover many areas that will help you to develop your basic skills. Later,
other areas that you’ll probably want to check out will expand your knowledge and develop
more advanced skills. So don't worry about absorbing it all at once!
Please keep in mind that this educational section is a work in constant progress and will
continually be enhanced to provide more information to educate the investor.
Start Reading and Learn …
Start Learning and Invest … Start Investing and Make Money!


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Develop Your Own Investment Plan
“It is planning not gambling that produces profit and security.”
Marcus Aurelius (121 – 180), Meditations on Stoic Philosophy
Basic information about investing is one of the most powerful tools you can use to find
success in the market. Stock Brokers are your link to information in the stock market. They
will recommend whether to buy or sell shares, help you get the necessary information and
check the performance of your holdings.

Always remember the following seven critical facts:
1. If investment success was easy, everyone would be wealthy!
2. Focus on the long term: trying to make a "fast buck" is the fastest way to lose money!
3. Understand and believe that your two major enemies are panic and greed!
4. Realize that, depending on personal attitudes, the market is always either "half-full" or
"half empty!"
5. Never invest on "tips!"
6. Nobody can see the future! And finally,
7. The rich rule over the poor and the borrower is the servant to the lender!
By now, if you think you are ready, make a plan with the help of the following ten more
basic rules, and put it into action!
1. Determine the Kind of Investor You Are:
What are your goals for investing and how do you feel about risk?
2. Decide How You Will Allocate Your Investment Money:
What portion of your money will you invest in stocks? In bonds? In mutual funds? How
much do you want to keep in liquid investments? Determine how much you need to invest,
and how to make these allocations.
3. Select Your Investments:
Choose them cautiously and create a broadly diversified portfolio, so you can minimize and
spread your risk over a variety of investments.
4. Follow up on Your Investment Plan:
Once you've launched your investment plan and you have your portfolio, make sure it
continues to reflect your goals and keeps working its hardest for you.
5. Monitor the Progress of Your Investments:
Regularly review your portfolio to determine if the value of your investments is increasing.
Compare your returns with similar investments and investigate all the facts.