1. You promise to take with a grain of salt all market/economic predictions from financial news channels, popular retail magazines and financial radio talk shows. They are as likely to be wrong as they are to be correct.
2. You will not consider investment advice from a friend (unless they are a professional).
3. You will not believe any investment idea must be acted upon immediately.
4. You will know that there will always be a salesperson that will promise you that they can deliver higher returns. You must be an educated and informed consumer before you can make a prudent decision. The lure of higher returns do not constitute due diligence.
5. You will promise to ask your financial advisor questions when you are concerned about markets or investments.
6. You will acknowledge that you are a long-term investor, not a speculator, and you realize that this requires patience. Markets go up and down, as will your account’s value. Volatility in markets is the price one must pay to get the returns of the market.
7. There are many worthwhile investment strategies. You realize that none of them works all the time.
8. You will promise to make an effort to understand your investment philosophy at a level that you can repeat it back with clarity.
9. Financial planning and your behavior as an investor are more important to long run success than the investments themselves.
10. Risk and return are related! There is no free lunch.