There are usually only a handful of guidelines an investor must stick to to make money. However, there are times when knowing what not to do is just as important as knowing what to do. In addition, our subjective feelings might complicate matters further.

While it's common knowledge that you should buy low and sell high, our natural inclination is to do the opposite. Consequently, it is crucial to establish a set of golden rules to guide you through challenging times.

When the market is going up, everyone can make some money. However, when the market is volatile, the investors who do best are those who have a strategy for the long term.

Never Lose Money

Remember the first and most important rule of investing: never lose money, as stated by the great investor Warren Buffett. A reminder of Rule No. 1 is Rule No. 2. The Oracle of Omaha advises investors never to sell a losing stock.

You can increase your returns by investing a more significant sum of money. As a result, financial stability is threatened by a loss. It's simple to say, "don't lose money," of course. Buffett's rule may be summarized as follows: Consider the costs and benefits before investing.

The investment could not be worthwhile if the potential rewards are insufficient to justify the dangers involved. That's why many people aren't buying long-term bonds right now. Buffett advises focusing on the risks first.

Act Like A Business Owner

Chris Graff, a co-chief investment officer of RMB Capital, advises, "Think like an owner." Remember that you are buying a piece of actual businesses, not simply stocks. Even though many people approach stocks like a casino, legitimate organizations are behind them. Stocks represent a little piece of a corporation, and their value rises and falls in tandem with the firm's profitability.

Investors should "know why you're investing," advises Christopher Mizer, CEO of Vivaris Capital in La Jolla, California. Are you investing or taking a risk? Fundamentals, value, and one's prediction of a company's future success are all necessary components of every successful investment.

The firm should be in a solid financial and competitive position, and the management team should be competent and committed to serving the company's shareholders, as advised by Graff.

Stick To The Process

Sam Hendel, president of Easterly Investment Partners, adds, "The best investors build a consistent and profitable strategy through several market cycles." Keep with what you know will work, even if temporary difficulties make you question your decision. The buy-and-hold strategy is one of the most successful investment methods.

It is possible, for instance, to invest consistently in stock funds in a 401(k) and then hang on to those investments for decades. However, it's simple to stray from your strategy when the turbulent market and you're suddenly losing money. Please don't.

Invest When Others Are Scared

It's common for investors to sell off their holdings or stop following the market entirely when it's experiencing a downturn. However, that is when everyone is looking for a good deal. The stock market is the only place where people can buy things, but no one wants to because of the inherent risk.

Buffett's most quotable sayings are, "Be frightened when others are greedy, and greedy when others are scared." The good news for those who choose to invest in a 401(k) is that once their account is established, they need do nothing further to maintain their investment. This setup helps you play the game objectively.

Maintain Your Investing Discipline

No of the economic condition, investors should always be saving something, no matter how small. Consistent investing will teach you to live frugally even while your portfolio grows, giving you the financial security you want.

The 401(k) is an excellent tool for this self-discipline since contributions are deducted from your paycheck before you even see the money. Selecting suitable investments for your 401(k) is also crucial; here's how to do it.

Maintain A Diverse Portfolio

You may lower your exposure to risk by maintaining a diverse portfolio. It's risky to have all your eggs in one or two baskets, no matter how well those stocks have done.

Thus, it is recommended by financial experts to diversify one's portfolio. Investing expert and former Stash director of investments Mindy Yu believes diversity is the most important thing to keep in mind. The ups and downs of the stock market might be less devastating if your assets are diversified.

Good news: it's often straightforward to increase portfolio diversity. By holding hundreds of shares in 500 of America's largest corporations, an investment in a Standard & Poor's 500 Index fund instantly increases portfolio diversity.