Rules. Oh, how we may be tired of them, they are never going away and we need to make our peace with that.

After all rules is what makes our business so pattern-y and eases it up sometimes.

So, what are the core rules of investing?

1. Invest into something you can understand.

Never think of it as investment into stock. You are investing and supporting a business. And you need to understand what it is you support and what are the return and selling rules of the particular business. Before making your decision you need to take a closer look in order to understand what you are about to get into.

2. Do not try to time the market.

You are to adjust to the markets, not the other way. Even Warren Buffer used to tell that. Anil Chopra, group CEO and director of Bajaj Capital has the same opinion: “So, you should never try to time the market. In fact, nobody has ever done this successfully and consistently over multiple business or stock market cycles. Catching the tops and bottoms is a myth. It is so till today and will remain so in the future. In fact, in doing so, more people have lost far more money than people who have made money,".

3. Be disciplined.

Never let emotions take over you. Never sell and buy on a whim – informed decisions all the way. after all your money is at a stake here and you need to have clean and cold head. Be disciplined and cold. Only numbers are to move you here and nothing else.

4. Have a portfolio as big as possible.

Diversification of your portfolio is the first thing you need to think about. The more points you have the better return you are going to have and less the risks are going to be. Plus, this way you are going to have more earning possibilities.

5. Do not expect too much.

Please, understand that if you do everything right and according to the book you are still going to have losses and there is no need to get desperate about all of it. Having realistic expectations is something of a must-do when investing into stocks. Even though a lot of stocks have generated more than 50 percent revenue in the recent years, that doesn’t mean that this ride is going to go on.

6. Don’t tell yourself that you “can’t”.

You need to believe on yourself, as corny as might sounds. Believing in your success is the thing that is going to push you even if you are not going to win for some time. Always believe that you can and you are going to get to your goal just fine. That is to be your main motivation over the years.

7. Make only informed decisions.

That means always research and always listen to the markets. It is the only thing that is going to be right in this situation. Especially stock market. Never doubt its abilities to guide you through the trades, but also rely on your gut.