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You may have heard that the best way to invest in real estate is when buying to consider "location, location, location". The best advice to make money in stocks and bonds seems to be "Buy Low, Sell High". But if you genuinely want to increase your net worth, you must obey the following maxim before all others: "Pay Yourself First".
When you pay yourself first, you remove your savings dollars from each income check BEFORE you pay any other bills. These savings will provide the raw material to fuel your investment engine. The higher the percentage of savings, the more fuel and the faster the investment engine will go. And, by re-investing your investment dividends, you compound the rate at which your net worth grows.
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Every year that passes I win some and lose some on the stock market. After reviewing my trades over the past 30 years, I discovered that in all cases, with one exception where the company went bankrupt, I lost my money by trading too soon. The other fine thing that I discovered about "buy and hold" is that without trades, there is no tax burden. Your winners compound tax free, at least until you sell, and your losers will eventually become winners.
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