Todd Harrison: 10 tips for successful investing

There is no one formula to effective money management: Where you stand is a function of where you sit. There are, however, operating principles that have served me in good stead throughout my 21-year career of managing money and running businesses. Ten of them are listed below, in no particular order:

-- Sync your risk profile with your time horizon. Know why your invested and for when.
-- Never invest more than you can afford to lose. Capital preservation is the first step toward wealth accumulation.
-- Opportunities are made up easier than losses. Sometimes the ability not to invest is as valuable as investment ability.
-- Respect the price action, but don’t defer to it. The last in line will never see the edge of the cliff.
-- Discipline trumps conviction. The mechanics of your swing are more important than the results of the at-bat.
-- Emotion is the enemy when making financial decisions. Leave the tears for weddings and funerals.
-- Manage risk, don’t chase rewards. There will always be a bigger, better thing — just focus on your thing.
-- When in doubt, sit it out.There’s no shame in admitting it’s hard, there’s only shame in pretending it’s not.
-- Don’t let bad trades turn into investments. Understand the goals of your market exposure.