I used to think I was terrible at investing. I’d follow every “rule” I read online: buy low, sell high, hold for the long term, diversify at all costs. Yet every time I tried, I’d end up losing money—buying a stock that plummeted, selling too early and missing gains, or diversifying so much that my returns were nonexistent. I blamed myself, convinced I didn’t have the “knack” for investing, until I realized: the problem wasn’t me—it was the one-size-fits-all rules everyone swears by.
We’re bombarded with investing rules that are supposed to guarantee success: “never sell at a loss,” “invest only in what you know,” “max out your retirement accounts first.” These rules are presented as universal truths, ones that work for everyone, no matter their income, goals, or risk tolerance. We follow them blindly, assuming that if we just stick to the script, we’ll build wealth—and when we don’t, we blame ourselves for being “bad at investing.”
Are the investing rules you’re following actually working for you? What if the “expert advice” everyone repeats is just a one-size-fits-all myth? These questions challenge the foundation of how most of us approach investing, yet they’re the key to stopping the cycle of self-blame and starting to see real results.
A former neighbor of mine, a retired engineer, followed every investing rule to the letter. He maxed out his 401(k), invested only in tech stocks (since that’s what he “knew”), and refused to sell any stock at a loss—even when it was clear the company was failing. After 10 years, his portfolio had grown less than 2% annually, barely keeping up with inflation. He was convinced he was “bad at investing,” but the real issue was that the rules he followed didn’t fit his goals: he wanted steady income in retirement, not high-risk growth, yet he’d stuck to rules designed for young investors chasing long-term gains. He didn’t need to get better at investing—he needed better rules.
I learned this lesson after years of self-blame. I’d followed the “diversify at all costs” rule, spreading my money across 20 different stocks and funds, thinking more was better. But most of those investments were underperforming, and I was spending so much time tracking them that I missed opportunities to focus on the few that actually grew. I also followed the “never sell at a loss” rule, holding onto a stock that dropped 60% because I was too stubborn to cut my losses. When I finally sold it, I’d lost $1,200—and learned that sometimes, selling at a loss is the smartest move. I wasn’t bad at investing; I was following rules that didn’t fit my style or goals.
The myth we’re sold is that investing rules are universal—that what works for a millionaire investor will work for someone just starting out with $500. But the truth is, investing is personal. The rules that work for a 25-year-old chasing growth are different from those that work for a 50-year-old saving for retirement. The rules that work for someone who can handle risk are different from those who panic at every market dip. Following generic rules isn’t “responsible”—it’s lazy, and it sets you up for failure.
Here’s how to find the right investing rules for you: first, define your goals clearly. Do you want short-term gains, long-term growth, or steady income? Your goals should dictate your rules, not the other way around. Second, assess your risk tolerance. If you lose sleep over a 10% market dip, high-risk stocks aren’t for you—stick to low-cost index funds or bonds. Third, test the rules. Try a small investment with a new rule (like “sell if a stock drops 15%”) and see if it works for you. If it does, keep it; if not, discard it. Investing isn’t about following rules—it’s about finding what works for you.
I still follow some investing rules, but now they’re rules I’ve tailored to my goals and risk tolerance. I don’t diversify just to check a box—I focus on a few low-cost index funds and a handful of stocks I understand. I don’t hesitate to sell at a loss if a stock no longer fits my strategy. And I don’t blame myself if things don’t go perfectly—investing is about learning, not perfection.
The problem with generic investing rules is that they make us feel like failures when they don’t work. We think we’re the problem, not the rules, and we give up on investing altogether. But investing isn’t about being “good” or “bad”—it’s about finding what works for you, even if it breaks all the so-called “rules.”
Next time you follow an investing rule and it backfires, ask yourself: is this rule wrong for me, or am I wrong for following it?
Disclaimer: Mention of any brand or trademark is for identification only and does not imply partnership or endorsement
