three rules of investing

Rule 1: Decide whether or not you should be in the market at all at this point in your life

Prepare for volatility - if you are not prepared for volatility, you are not ready to own stocks.

Rule 2: Invest for the long haul

Instant gratification is an almost guaranteed way to lose money in stock investing. The real money in stocks is typically made in the third, fourth and fifth year of your investment because you are participating in a company's earnings, which should grow over time. Those who put away a certain amount each quarter and focus 10-15 years down the road, may be much better positioned to take advantage of the up and down cycles of the market.

Rule 3: Do not try to predict the stock market or the economy

Trying to predict the market is a total waste of time. When someone says there will be a recession six months from now, that is not economics - that's weather forecasting. You make money by concentrating on individual companies, not the economy or the market.