The Rules of Investing

I look at the stock market as a means to an end—or as a tool to access financial comfort. After spending decades as a personal investor, I developed a set of rules which demonstrate how to safely navigate the market to ensure successful investing, while simultaneously fulfilling my goal of achieving a life of financial comfort. These are critical rules that go hand in hand with any area of investing you may have an interest in. It is incredibly important that you read each of these rules before you start investing. It is even more critical to continue to adhere to these rules throughout your investment endeavors.

While I am here to guide you through the markets, ultimately, it’s up to you to adhere to the rules of the investing game to achieve success. Please read each rule thoroughly and follow each of them closely.

Let’s begin.

Rule No. 1: Never make an all-in bet.
No one has a crystal ball to predict which stocks will increase the most, and no one can predict stocks which won’t live up to their potential. That’s why you never want to invest all your money in one stock. Remember, the volatility of one stock is always higher than the volatility of your overall portfolio. For this reason, I believe you have the best chance to maximize gains if you hold, at minimum, three to five of the listed Core Investments recommendations in your portfolio. By doing this, should any single stock value decrease (based on the natural price fluctuations the market) you’re less likely to be affected because your “winners” will outweigh any possible losses.

You will want to spread your money around and give yourself plenty of opportunities to win. The best way to do this is to follow my next step.

Rule No. 2: Maintain equal weight of the positions in your portfolio.
This rule is two-fold. First off, equally weighting your positions means you should invest the same amount of money for each stock in your portfolio. You never want to put more money into one stock over the others because if that stock goes down, you will lose a ton of money on a single position. By equally weighting your portfolio, you give yourself equal exposure to the stocks that will increase the most.

Remember, depending on the price of the stock, it’s OK to buy just one share of a position. Think of a pizza pie. Whether it’s cut into four slices or 12, the size of the actual pizza doesn’t change. This is also true with stock values.

You may choose to have one share of Tesla or three shares of NVIDIA. – both are equally good investments and are largely worth the same amount of money. Having more shares in one company doesn’t make it a better investment in any way.
The second part of this rule is simple: set a specific amount and stick to it. Then, use the set amount as a marker for all of your positions across our portfolio.

See the example below:

1. You have $1,000 in your brokerage account to invest and your plan is to purchase five investments from the PTP (Core) Light Weight Portfolio.

2. You will divide the $1,000 by 5 Core Investments equates to $200 for each stock. See the example below:

• Tesla: $200.00
• Nvidia: $200.00
• Ethereum: $200.00
• Fluence Energy: $200.00
• Charge Point: $200.00

Rule No. 3: Build your position over time.
When we send a trade alert for you to buy a stock, as the bids go up the demand for the stock will increase, as well as its price. This is why, oftentimes, you’ll see stock prices higher than our recommended buy price. Be prepared for this to happen.
One way to combat this is to build your position over a few days, weeks or months – depending on your marker for the amount of money you plan to invest. So, when we send a buy alert, simply invest a small amount in the stock, wait for the stock to “bottom out” or settle itself over time, and then buy more shares.

You may want to come in when the prices for small buyers are optimal. This usually happens between 11 a.m. and 3 p.m. and that is the time I suggest buying into your positions. To that end, never buy more shares than you set for your equal-weight marker in Rule No. 2.

Rule No. 4: Quantity of stocks in your portfolio
Do not get in a habit or make the mistake of having too many stocks in your portfolio; make a serious attempt to maintain the Portfolio balance identified below:
If your investment Portfolio is between $1,000-$10,000 invested: the ideal amount of investments to have in your portfolio is 3-5.
If your investment Portfolio is between $10,000-$100,000; the ideal amount of investments to have in your portfolio is 6-8.

Rule No. 5: Take profits on the way up.
Disclaimer: Prime Time Profits strategy is to keep our investment 3-5 years and to not take profits. During such time, we expect our stocks to double. The Prime Time Profits plan is for members not to take any profits until the year 2030 or ten years after a members initial investment.