In my previous blog, I shared four basic rules of investing. I’m not done with this topic. But before pressing on, it’s good to pause and reflect on these rules to make sure we understand their rationale and the key takeaways. In that spirit, please take some time to answer true or false to the following questions (answers are provided below).

Questions (true or false)

Rule #1 Don’t lose money. Therefore, hold most of your money in cash instead of riskier assets.

Rule #2 Invest to beat the market index

Rule #3 Buy the right stocks at the right time.

Rule #4  Monitor your investment frequently (e.g., weekly)

*** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** ***

Answers

Rule #1 Don’t lose money. Therefore, hold most of your money in cash instead of riskier assets.

False. The idea that cash is a