The eight commandments of investing

1. Invest

Money lying idle does not multiply.

1. Do not strive for short-term profit

If you invest for the long term and stick to the strategy, time works for the investor and supports the accumulation of wealth.

1. Don't try to catch the 'right moment' - it doesn't exist

Entering and exiting the stock market at short notice is normally detrimental to returns. If you invest with patience, over the long term and in a diversified manner, the time of entry for an equity investment is almost irrelevant.

1. Don't try to find the 'right title' - it doesn't exist

A portfolio consisting of only a few securities has higher investment risks than a broadly diversified portfolio. These risks are generally not rewarded by higher returns.

1. Don't try to know more than the market, because the market knows a lot

It can be assumed that every price on the stock markets already contains the publicly available information relevant to its development. This means that, in case of doubt, the stock market knows more than investment advisors, bankers or financial journalists.

1. Be disciplined

It's recommended that you determine the individual commitment structures and their investment and then define the asset allocations - i.e. the proportion of assets that can be invested in equities and equity products, for example. It is then crucial to stick to this ratio.

This allows the compound interest effect to take full effect. This is created by the fact that the income from an investment is directly reinvested and thus generates income again. Back and forth and many transactions also cause costs that reduce the net return.

1. Have fun, but - strategy first

Last but not least, the investment should also give pleasure.

You can make bets with a clearly defined - in case of doubt rather smaller - part of the portfolio.

1. Do not trust anyone

Successful investment also requires an appropriate amount of skepticism. The financial markets are teeming with providers who promise exaggeratedly high returns or guaranteed profits and are simply trying to profit from people's lack of financial know-how. It is and remains a fact that higher returns can only be achieved with greater risks - and with dubious providers in particular, total loss may not be far away.

Excerpt from: Neue Züricher Zeitung - Die 8 Grundregeln der Geldanlage (German)