The 10 golden rules of investing

This article was originally published on Bankrate.com. Investing can often be broken down into a few simple rules that investors can follow to be successful.

But success can be as much about what to do as it is what not to do. On top of that, our emotions throw a wrench into the whole process. While everyone knows you need to “buy low

and sell high,” our temperament often leads us to selling low and buying high. So it’s key to develop a set of “golden rules” to help guide you through the tough times.

Anyone can make money when the market is rising. But when the market gets choppy, investors who succeed and thrive are those who have a long-term plan that works. Here

are 10 golden rules of investing to follow to make you a more successful—and hopefully wealthy—investor. Rule No. 1: Never lose money Let’s kick it off with

some timeless advice from legendary investor Warren Buffett, who said “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.” The Oracle of Omaha’s advice

stresses the importance of avoiding loss in your portfolio. When you have more money in your portfolio, you can make more money on it. So, a loss hurts your future earning

power. Of course, it’s easy to say not to lose money. What Buffett’s rule essentially means is don’t become enchanted with an investment’s potential gains, but also look

for its downsides. If you don’t get enough upside for the risks you’re taking, the investment may not be worth it. Focus on the downside first, counsels Buffett.