Don’t take unnecessary risks with your capital when all you need to do is to keep place with inflation.
Never put all of your money into one investment, be it property, cash, stocks and shares, gilts etc. The risks are far too high for even the most sophisticated investor. A well spread investment portfolio will give you all that you require, from living your life today, to making sure that tomorrow is financially secure.
Don’t be greedy, seek to get rich slowly as even professional investors struggle to make market timing work.
Focus on long term wealth creation and capital preservation. In order to deliver long term returns you need to avoid being distracted by short-term noise and market fluctuations. The value of your portfolio in six months is less important if you are planning to hold it for 5, 10 or even 20 years.
Take risk when risk is well rewarded. There are things you need to know when working out whether the risk you are taking is well rewarded. A good investment is one where the risk premium is high and the probability of losing money is low. Remember that volatility isn’t the same thing as risk as volatile market conditions can often offer some of the best opportunities.