Law 1: Protect your capital
Law 2: Use common sense: Don't let anyone talk you out of selling sinking stocks.
Law 3: Don't count on the government to boost your investments. Use government -inspired
rallies as opportunities to sell.
Law 4: Invest exclusively in liquid easy-to-sell investments.
Law 5: Stay flexible. Expand your horizons beyound traditional investment strategies.
Law 6: Use investment that move independently of stocks and bonds. Examples: currencies and
gold
Law 7: Find special situations that go up DESPITE a bear market. Example: companies that are virtually depression-proof.
Law 8: Use investments that go up BECAUSE of a bear market. Example: Inverse ETF
Law 9: Balance your portfolio: Even in a bear market, don't bet EXCULSIVELY on the downsider.
Law 10: Don't fall in love with your investments: Take profits along the way and roll them into new opportunities. (Timing ?)
Law 11: Be a contrarian! Buck the crowd!
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