I think for retail investors, the safest strategy is still buying low and selling high or even easier would be to buy ETFs and continually average down to hold for the longer term. Of course, if valuation is high, it might be wise to take profit and average down again on dips. In this sense, rules 1,4 and 6 would apply.


I agree most with rule 6 because it is important to learn when to sell in the rally and be brave enough to average down during dips. There must always be sufficient cash on hand to buy the dips yet not being too heavily stuck with cash. Thus, selling when the market is strong would free up cash and allow deployment during dips.


For me, ETFs are the best for me and not too volatile that I would need to keep my eyes glued to the market. My one stock would be VTI that tracks the world’s index. It allows exposure to mature markets like US and also emerging markets that could offer greater returns in the future. It is also sufficiently diversified with low expense ratio.