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Thursday, May 21, 2009

The 11 Laws of Bear Market Success - Martin D. Weiss

I. Protect our capital.

II. Use common sense; avoid things that are most vulnerable in this crisis.

III. Do NOT count on the government to turn the economy around or save sinking investments.

IV. Invest exclusively in LIQUID, heavily traded investments.

V. Stay FLEXIBLE in our thinking and our choice of investments.

VI. Use investments that move INDEPENDENTLY of stocks and bonds.

VII. Seek out investments that rise DESPITE falling stocks.

VIII. Use investments that rise BECAUSE stocks are falling.

IX. Diversify and balance our portfolio for added risk reduction and profit potential.

X. Always be ready to cut a loss or take a profit.

XI. Above all, be fiercely contrarian; seeking to buy what others are selling at a deep discount ... and selling what others are buying at a premium.

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