The Ten Commandments of the Successful Investor
by Ron Tank [ Free Download ]
I believe that every successful investor should have a set of rules and guidelines by which they learn to live and invest. Even after twenty years of investing in the stock market, I still need a daily reminder of the most important rules. I invite you to use them to your benefit. Every time I ignored one of these rules, I paid a price.
“But blessed is the one who trusts in the Lord, whose confidence is in him. They will be like a tree planted by the water that sends out its roots by the stream. It does not fear when heat comes; its leaves are always green. It has no worries in a year of drought and never fails to bear fruit.” ~ Jeremiah 17:7–8
God carved the Ten Commandments into stone. Moses presented them to the people to be a permanent record of how we should live our daily lives. If we ignore them, we do so at our own peril.
The Ten Commandments presented here are my personal rules for investing. If you allow them to, I believe they will also guide you in becoming a successful investor and a great steward.
I. Thou Shall Seek God’s Wisdom
Matthew 6:33 says, “But seek first His kingdom and His righteousness, and all these things will be given to you as well.”
One of the best things you can do is to seek God and His wisdom. The fulfillment of life’s needs and the answers to your most difficult and challenging problems—all of these come to you when you keep the pursuit of God first.
Keep first things first.
II. Thou Shall Avoid Slavery
Luke 16:13 tells us that we cannot serve both God and money.
Money cannot be your master. If you allow yourself to owe money for things you possess, then your possessions own you. You work for them. You become their slave.
Your decisions will be influenced by your constant need for more money. What appears to be reasonable debt can become overpowering. Pressure will build, and bad decisions will follow.
A good steward will not allow himself to become a slave to debt. I broke this one, and it brought many tears.
III. Thou Shall Never, Never, Never Give Up
Matthew 19:26 tells us, “with God, all things are possible.”
Becoming a good steward requires more than wanting to be one. It requires determination.
You must believe this thought: I can do it. Failure is not an option.
It must be solidly in your mind, cast in stone.
IV. Thou Shall Use a Proven System
John 14:6 says, “I am the way and the truth and the life. No one comes to the Father except through me.”
If you want to go to heaven, there is but one way. The stock market is not the place to experiment.
You must be sure that the system will produce the results you seek.
A good steward uses a proven system.
Henry Ford didn’t reinvent the wheel, but he sure did put it to good use.
V. Thou Shall Honor the System
Deuteronomy 5:16 says, “Honor your father and your mother, so that you may live long in the land the Lord your God is giving you.”
I recommend honoring the method you use in the stock market for a similar reason, so that you may live long in the investment world. When you’re tempted to change the method or to do something differently, make certain the changes are worthy.
Don’t change what doesn’t need changing.
VI. Thou Shall Avoid the Most Deadly Three
Luke 12:15 says, “Then He said to them, ‘Watch out! Be on your guard against all kinds of greed; life does not consist in an abundance of possessions.’”
Proverbs 16:18 says, “Pride goes before destruction, a haughty spirit before a fall.”
Haggai 2:5 says, “This is what I covenanted with you when you came out of Egypt. And my Spirit remains among you. Do not fear.”
Greed, pride, and fear will almost certainly destroy the efforts you make to become a good steward and invest well. Greed will make you break rules. Pride will make you argue. Fear will keep you frozen, unwilling to make the effort or a needed decision.
VII. Thou Shall Cut Losses Quickly
Matthew 10:14 says, “If anyone will not welcome you or listen to your words, leave that home or town and shake the dust off your feet.”
If what you’ve been doing isn’t working, don’t waste time waiting for things to change. Take action.
In the market, the only thing you can do is to sell, thereby cutting your losses.
Then, stop and review the first six commandments.
VIII. Thou Shall Not Worry
Matthew 6:34 says, “Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own.”
You cannot worry about what might happen the next day or about whether you’re right or wrong.
Being a good steward and investing well requires you to make decisions. If you can make good decisions and act, then there is no need for worry.
Following the first seven commandments makes this much easier.
IX. Thou Shall Listen
Genesis 42:21 says, “They said to one another, ‘Surely we are being punished because of our brother. We saw how distressed he was when he pleaded with us for his life, but we would not listen; that’s why this distress has come on us.’”
Refusing to listen often has bad consequences. Not listening to—or arguing with—the stock market can, and often will, have devastating results on your efforts toward being a good steward.
If you find yourself arguing with the market, then it’s likely you’re not listening.
X. Thou Shall Give Back
Malachi 3:10 says, “‘Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this,’ says the Lord Almighty, ‘and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.’”
A good steward recognizes that God is the owner of everything. He is willing and glad to give at least 10 percent, a tithe, to God. If you don’t, you’re stealing.
What future does a thief have?
If you feel like you don’t have enough to give from, review the first nine commandments. They make commandment number ten possible.
At one time, I failed here too. Don’t do it!
Why make the same mistakes I did?
Read my book, study the Triple Tank Strategy Guide and Model Book and take what I have learned, documented and proven from my twenty years of investing and use it well. You can avoid a lot of mistakes if you do.