Seven Principles of Successful Investing

1.   Use the 90-10 Rule - 90% of investment results depends on your asset allocation decision; 10% is due to selection and timing. Most investors spend 90% of their time on "timing and selecting".

2.  Be Efficient - Use modern portfolio theory, mix investments and reduce volatility.  Balance Risk and Return.

3.  Use time, not timing - Investors seem to buy high and sell low because they "time" their buy and sell decisions.

4. Think intellectually, act intellectually.- It is one thing to develop a sound portfolio and another to stay with it when the markets falter.  Most people are motivated by emotions based on short tem variables and the "latest news". Success in investing requires patience and stamina.

5. Start Early and let compounding work for you - Most people understand the importance of saving but don't appreciate the impact of starting now.  Start as early as possible.

6.  Know your real rate of return - After taxes and inflation, what are you keeping?  Develop a system to track your progress at least annually.

7.  Save Regularly - Historical data shows that a systematic pattern of investing reduces short tem risk and reduces average share prices, DOLLAR COST AVERAGING.

*Dollar cost averaging does not ensure a profit r guarantee against loss in a declining market.