Thursday, November 10, 2005

#3:Basic critical rules and strategy

Only 7 basic but critical rules to follow to increase your success rate:

  1. Invest with money that you can afford to lose.
  2. DIVERSIFY. If you have US$200 to invest, start with $150 in 5 programs within the same month. Never, never,never,never start with just one program..that is suicide.
  3. It is not "why" a program suddenly shut down, it is "when" will a program die. If you have this mentality, it goes a long way for your success. Programs will close down, hence be prepared for that and with diversification, the losses are cancelled out.It is like stock trading...some trades you win, some trades you lose.
  4. Do not control your greed. Why did I suggest that you put in $150 when you have $200 to spare? Because after a month or two when you see you profit grows DAILY, you will be tempted to increase your capital.Satisfy your greed and use the other $50 to invest. Reserve some spare to invest in other programs that you are tempted to enter due to the unresistable promise of high profit or fast profit maturity period. Invest $10 in such programs just to satisfy your lust.
  5. Take out your intial capital as soon as possible. Do not re-invest into the same program until you get back your capital.
  6. Once you get back your capital, the subsequent pure profit can be partially withdrawn or re-invested or invested in new programs.
  7. Put in some effort on the security of your PC. You do not want hackers to take away your money. Dont underestimate them.