What ever you do in the investing world, make sure you do not speculate. If so, take only about 3 to 5 percent of your annual income and have a speculation account or what Benjamin Graham may call it a Mad Money Account. No matter the situation never cross or mingle the two.
The reason(s) I highly say don’t speculate because you are gambling your riches away. Don’t let us forget that Stock Market is already volatile and it’s important to know which investments are sound based on your judgement. Always invest in what you know and not in what CNN or every other Broker tells you.
If you are Dollar Cost Averaging, which is putting a certain amount away in the Stock Market every week, bi-weekly, or monthly no matter how the market is playing out, don’t speculate. If you must speculate, only involve what you are able to and nothing more.
Remember these keys 🔑 when it comes to investing that was written by Benjamin Graham himself:
– Speculating becomes mortally dangerous the moment you begin to take it seriously.
– You must put strict limits on what you are willing to wager.