What is the single, most effective piece of financial advice you've ever received?

[USDJPY]

"It takes courage to be a pig." Stan Druckenmiller

 

[matthewyoung]

"It takes courage to be a pig." Stan Druckenmiller

"It takes courage to be Stan Druckenmiller"- Pig

 

[Buy1Sell2]

I think some very wealthy people have violated this principle.

Some.

 

[stockmarketbeginner]

Never risk more than 2% of TLNW (Total Liquid Net Worth) on any one trade/idea.

Does than don't put more than 2% in a passive S&P buy and hold index fund? Or can something like that comprise more than 2%.

 

[Buy1Sell2]

Does than don't put more than 2% in a passive S&P buy and hold index fund? Or can something like that comprise more than 2%.

Are you expecting the fund to go to zero?

 

[Handle123]

Don't invest in race horses. Know people lost incredible sums in buying and getting those animals trained.

 

[stockmarketbeginner]

Are you expecting the fund to go to zero?

I don't plan for the S&P 500 to go to zero. It diversifies away single-stock risk, and the S&P has never gone to zero in its decades-long history.

 

[Buy1Sell2]

I don't plan for the S&P 500 to go to zero. It diversifies away single-stock risk, and the S&P has never gone to zero in its decades-long history.

That's correct, thus a lot more than 2 percent of a portfolio could be in the fund you speak of.

 

[lawrence-lugar]

Anything Gordon Gekko said to Bud Fox...is the most effective financial/trading advice I've ever received, or heard.

GG is a hawk. -- and he can spot and read your mouse butt a mile away.
GG is filet mignon, and Bud Fox is hamburger.

I'm number 99....1999 is one of my favorite years, if not the favorite.

 

[Buy1Sell2]

Trading is a business, not gambling. Manage risk today so you can stay in business for the good times tomorrow.

Correct. Risk management is all we have in this business. There is nothing else.