How to invest money correctly is the first question that every novice investor asks when studying the rules of investing on dozens of sites. There is no magic pill, no one will give a ready-made working version of working with money. Only experience and perseverance determine the success of a person, such as Warren Buffett and Robert Kiyosaki. Each has released his own book with the interpretation of the 10 rules of the novice investor in their golden understanding. These are truly successful people who have something to share with newbies.

How to invest money correctly is the first question that every novice investor asks when studying the rules of investing on dozens of sites. There is no magic pill, no one will give a ready-made working version of working with money. Only experience and perseverance determine the success of a person, such as Warren Buffett and Robert Kiyosaki. Each has released his own book with the interpretation of the 10 rules of the novice investor in their golden understanding. These are truly successful people who have something to share with newbies.

Where do the investment rules apply?

Novice investors are looking for rules for their specific field of activity. This doesn’t make much sense, since money management methods are the same everywhere and require trivial discipline. When investing in real estate, securities or Internet startups, you will always think about the ultimate goal – you need not to lose, you need to earn. The table of directions below will prove that there is no difference where to get income, because the main thing is to do it right.
Real Estate – Investing in real estate requires market analysis, highlighting a specific region that will give the greatest profit. All possible risks must be considered, including war, bad weather or crisis. The timely purchase or sale of an asset will bring profit, and rash steps will bring losses with four to five zeros.
Stock market – Only 1 person was able to make billions of dollars from one bill. This man wrote a book. Now everyone is looking for Warren Buffett’s 10 Golden Rules of Investing. Investing in securities requires skill, because stocks in one company will not make you rich.
Forex – The global analysis of the economies of states and their conflicts in the political arena sometimes defies logic. Possession of information does not always help in making competent decisions, because there are manipulators on the market who must be reckoned with.
High Yield Investment – The high yield investment space is like roulette or casino for many newbies. Some projects give thousands of percent of the profit, others die before they can be born. Sometimes madness buries the dream of financial independence. However, investor rules help you not to do stupid things, building a strategy for generating passive income.
Cryptocurrency – Digital money can make an investor rich or take everything in a matter of days due to its volatility. A cryptocurrency can turn out to be a scam, another one can be pumped by thousands of percent in hours. Startups promise success, whales move prices, the crowd can’t do anything – the realities are harsh. Those who have adapted live on a profit from the wrappers, because they know the rules.
Gold – Investing in gold is considered the safest, although history clearly shows periods of stagnation or loss. You will not be full of gold, so it is necessary to work with the raw materials market fully, which also requires knowledge of asset allocation.

Investor rules from famous people

As you already understood, everything is necessary: discipline, knowledge of the market, control of emotions, the ability to diversify, and so on. A number of famous personalities explain how to properly invest money in their own way. On the recommendations, many were able to learn how to control themselves and behave correctly, because earnings depend on this. The books are popular all over the world, so let’s highlight the main investor rules for each of the titans.

Warren Buffett’s investment rules

Warren Buffett, one of the richest people in the world, presented his vision of investing in stocks of companies. Find out what motivates the person who has become the one who can directly influence the value of corporations.

Warren Buffett’s investment rules are as follows:
  1. Mr. market. The value of a security should be determined independently of the stock market sentiment, which is like an unbalanced person with psychosis. The market should not think for you, because there is a risk of missing out on the opportunity to buy cheaper and sell more expensive. We need to act when it plays into our hands.
  2. When you buy a share, you are buying a company. Warren Buffett teaches how to invest in the long-term prospects of the company, but not in the short-term benefits. We need to focus on what is going to happen, not when it is going to happen. This approach puts the investor in a deliberately advantageous position, because correctly selected shares are guaranteed to bring profit in the future.
  3. Attempts to guess market movements. Short-term price fluctuations do not in any way affect the overall picture and prospects in general. The unpredictability of the movement of quotations brings too many unknowns in the mathematical equation of making money.
  4. Inevitable falls. The inevitability of receiving losses is forced to understand how to invest money correctly. There is a high probability that the drop will be over 30% within 10 years. Ups and downs are inevitable.
  5. Quintessence. Downturns should not bother an investor, as fundamentally selected companies will still be exhausting. Only the emotional stability of the personality will help not to panic, but to earn money.
  6. Compound interest. Many people underestimate compound interest – the accrual of interest on the amount of the initial deposit and the accrued interest. The longer the investment works, the more tangible the profit. The impatient and short-sighted I miss this opportunity.
  7. Delightful compound interest. The power of compound interest still amazes the author himself: double the investment period – the growth will triple, triple the accrual period – the growth will grow almost 9 times.

The vision of Robert Kiyosaki

Despite the fact that everyone is looking for the golden 10 rules for investing, famous people give fewer recommendations, highlighting the main thing. Robert Kiyosaki is known all over the world for his literary works in the financial field. The advice is superbly summarized in Rich Dad Poor Dad.

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Robert Kiyosaki highlights the following set of rules for a novice investor:
  1. Know what income you are working for.
  2. Convert regular income to passive income.
  3. Always be prepared for unexpected situations so as not to miss out on benefits.
  4. Invest in yourself, gain knowledge.
  5. Look for a mentor who can help you with advice.
  6. Withdraw the invested asset, leave the profit at work in order to stay in the game.
  7. Assess risks and potential rewards.
I strongly recommend that you familiarize yourself with the work that has helped shape many successful businessmen.

Top 10 rules for a novice investor from Burton Malkiel

The renowned American economist also shares his understanding of how to learn to invest wisely. There are a lot of works recognized by the world, so almost a century of experience is worth using.
The book is characterized by 10 main rules for the aspiring investor from Burton Malkiel:
  1. Start saving right now, without delay, time is money. You need to rely on time, not on the guarantees of strategies from the gurus. Not knowing how to save money will not make you rich in the future.
  2. The only sure way to wealth is investing in savings and following a strategy. Cut out money from your own budget to increase capital, it is not difficult to do this.
  3. Don’t be caught off guard: build reserves. Cash should work, and that’s a valid statement. However, part of the insurance capital will always make up for losses and help get back on track.
  4. Take advantage of tax breaks. Strive to ensure that your investments bring tax-free income. Take advantage of legal savings opportunities without taxation.
  5. Complete your portfolio, distribute assets. One of the 10 rules of the investor, Burton singles out the creation of a portfolio of various types of assets.
  6. Diversification prevents misfortune. Capital diversification will help to avoid the “eggs in one basket” situation. Unprofitable directions should be replenished from profitable ones, overlapping failures.
  7. Pay yourself, not others. It is not worth paying the costs to the funds. Paying yourself is primarily the repayment of any loans and obligations.
  8. Respect the wisdom of the market. The desire to be smarter than the market leads to unsuccessful attempts to beat it. You need to play by the rules, beating other players.
  9. Proven winners. Only dedication, perseverance and time lead to success.
  10. Don’t become a dumb imitator. How to learn to invest money wisely from scratch – not to be a herd, to keep your point of view.

Darren Winters’ Golden Rules for Investing

One of the most successful traders in the United Kingdom, Darren Winters, also shared the golden rule of investing. The man focused on a single thought – cut your losses. The emphasis was on the stock market, because there is a force that makes you lose money in the stock market.

The fear of selling stocks in a falling market forces the trader to act rashly. The price of securities falls slowly, so the first thought is temporary. Then the reduction in price continues, but the fear of fixing losses requires holding positions that need to be disposed of. Investments in stocks are profitable, but they can depreciate completely, so you need to take control of the situation and “cut losses” in time.


It’s the 21st century, so the world of investments is globally shifting to the Internet, where all the events take place. Since 2016, a lot of money has been lost, nerves were wasted, the hair on my head was torn out, but everything led to stability and tranquility. The investor rules above from well-known personalities are not at all useless, because everything has been tested in practice, sooner or later they come to what was said. However, novice investors need more practical cases from scratch here and now. For this, we have prepared investment rules based on the experience of a private investor for all areas of investment and any amount.

Take risks

Let’s highlight this point as the main investment rule. If you want to become an investor, then accept the risks of partial or complete loss of money, because it is impossible to move on without this. The absence of rose-colored glasses is sobering, makes the mind cold and directs the brain to the goal of earning, rather than enjoying good luck.
Hundreds of people ask the same questions – “Will I definitely make money here? Is this a real company with guarantees? ” Those who have not convinced themselves that they really lost money have lost them, the rest are fighting for profit.

Losses are inevitable

Understanding how to invest correctly comes from basic ideas – it is impossible to always work in a positive way. Investments brought losses even to billionaires, but they did not become millionaires.
A series of losses drove people I knew to despair, because there was faith in the business and its steadfastness. The reality is sobering, only those who have accepted the risks take losses for granted and move on. Not everyone is ready to put up with this, these are the realities.


Believe me, portfolio diversification is not just a word of mouth. You need to be sure that the loss will not nullify you and, God forbid, bring grief to your family. It is impossible without losses, but in the long term, a portfolio should be collected from different directions. It is the other directions that will cover losses and bring capital to a plus. This is how the passive income of a novice investor is built – through losses to profit.
Diversification is clearly one of the top investment rules. Starting the path of an investor, I talked with many of the same newcomers who chose the “best option” of investment. After a bad experience, it turned out that they simply had no money left and needed to go to the plant. If there were investments somewhere else, we could continue to work. I never understood why risk everything for the sake of faith, not strategy.

No loans

One of the global problems is the topic of loans. The top 10 rules for investing include a recommendation not to use borrowed funds in investments. Only free money and savings should be used. A bad scenario with a loss of credit will harm you and your loved ones, which does not lead to a clear strategy and plan for earning money.


I talked with a 55-year-old woman in one of the investment projects. One day she said that she took out a loan secured by an apartment that was to be transferred to her children and invested in a highly profitable program. She was not my partner, they just stayed in the same place and talked. A month later, the project closed and announced the impossibility of a refund. I simply cannot convey panic and despair in dialogue with this woman. It was at the same time sorry for her and it was not clear why it was necessary to do such a stupid act.

Overflow of profits

According to the rules of competent investment, a part of the profit should be sent to new directions. Capital must always work, the portfolio must be filled. The method allows you to “loop” passive income and make it stable.
The topic continues the idea of ​​creating an investment portfolio. Some areas will cease to be profitable, their number must be filled with other worthy options and continue to flow funds.

Storing money in different wallets

Diversification should also be in wallets or bank accounts. There is no guarantee that the organization will not close, go bankrupt, or simply steal clients’ currency. Risk insurance should protect you as much as possible from losses, even from trusted sources.
Remember the situation in 2009, when the crisis caused dozens of large banks to go bankrupt around the world. There were also precedents on the Internet: the closure of Liberty cash, ePayments and the blocking of Advanced cash accounts.

Don’t use 1 source of information

You cannot trust a single source of information 100%. Everyone in business has their own benefit. Only a few will tell you how to invest correctly if there is a goal to conduct an honest business. Others will deliberately mislead the investor. Information should be verified by benchmarking from multiple sources.


Highly profitable investments have such a category of projects “piggy bank”, where you can withdraw all funds at any time with a profit. It happened that one reputable source gave the status of a “scam” to a piggy bank, which continued to pay. The rest in the herd instinct set a similar status. After continuing payments, it turned out that no one stopped working, there was not even a desire. However, the inflow of funds could no longer be restored, the project was closed, everyone suffered.

Stabilization Fund

One of the ten basic rules of a novice investor is the formation of a stabilization fund. The cash reserve will lie until the moment of need to make up for the losses. It is recommended to replenish the fund from time to time in order to feel confident in the market without the risk of being left with nothing.
The investment rules helped a friend to break the “pig” during a difficult period and successfully get out of the drawdown. Having put the money back on the right track in time, we managed to avoid zeroing the wallet. I had similar situations when I had thoughts of going to work as a consultant, because I had to get the stash that saved me.

Don’t be afraid of risks

Who is an entrepreneur – someone who undertakes at his own peril and risk with the likelihood of failure, but it is small and medium-sized businesses that pump the budgets of countries. In investments, the rules of the investor also work – we are all entrepreneurs, we take steps to earn bread with a rest out of thin air.

Compound interest

Neglecting compound interest leads to a loss of profit percentage. There is a risk of being left with nothing, because time stops playing in our favor. The strategy is not recommended for novice investors according to the rules of investment, however, the ability to handle risks and mathematics works wonders.


Simple math: calculating interest on the amount of the deposit with interest before doubling the capital requires 30% less time than if you withdraw profit regularly.

Use referral links

The digital age has thrown part of the business on the Internet. To popularize their services, the owners are ready to share part of their profits with partners. Registration in the system is allowed using referral (invitation) links. It is illogical to omit the possibility of additional earnings, because teamwork brings more income.
Simple mathematics: projects are ready to share up to 50% of their own profits for attracting clients. Direct advertising in their understanding is worth such a percentage.

Do not take money in trust for investment

The recommendation from the list of 10 main rules of a novice investor is not to take other people’s money into management. Convincing yourself to be professional in 99% leads to the loss of other people’s investments. Use affiliate links to increase earnings, avoid temptations.
Over the years of work on the Internet, I saw dozens of examples when people with a reputation decided to organize their own trust management. Since 2016, no one has ever managed to give investors a profit, everyone went bankrupt, they lost their reputation, the industry did not see them again.

Accept mistakes

Don’t run away from mistakes you have made. Investment rules help to understand how to invest correctly for a novice investor, however, the experience is accumulated on their own bumps. We tend to make mistakes, even the greats make mistakes. Recognizing and correcting mistakes allows us to grow and develop.

Don’t trust promises

Around everyone strives to make a promise of the safety of funds in his investment direction. Conduct your own analysis, seek the truth and make an informed decision. You can not trust guarantees at all. Everyone is trying to cash in on us, there is no goal of making you rich – remember this.

Protect yourself

Investments in stocks, currency, real estate, HYIP projects, cryptocurrency or raw materials require security. Investment rules help not to commit stupid things, but everyone is responsible for the safety of income. Follow the investor safety rules:
  • Set strong passwords
  • Select a verified mailbox
  • Store money in verified wallets.
  • Use a VPN to stay anonymous online.
  • Install an antivirus to avoid catching a virus on your computer.
This concludes the article on the rules of the investor. Newby investors should understand the market from scratch, regardless of affiliation: stock, cryptocurrency, HYIPs, startups, real estate, raw materials, etc. The basic rules of thumb for investing are also covered. I hope the article was as helpful as possible. Don’t make stupid mistakes – learn from strangers. GOOD LUCK!