A. Here are 3 most important investment principles to follow:
1. Diversify your investment portfolio
Otherwise you will be gambling by concentrating your money in a few potential "winners", but there is no guarantee in the investment world for "winners".
2. Keep a long term investment horizon
We know for the long term, stocks are up, but if you aim to make a profit in the short term, there is not much difference from your hoping to win in a casino.
3. Rebalance your portfolio
If you don't rebalance, you will overtime build a concentrated portfolio and deviates from principle #1. When principle #2 kicks in - in the short term, there is no guarantee your holdings are "winners", you could be in for some nasty surprises.