Came across an old reference to this when doing some stock research. I love how some trading wisdom is timeless.
12 commandments – from Carret (1930) Art of speculation.
1) Never hold fewer than 10 different stocks over 5 fields of business
2) At least once every 6 months, reappraise every stock you own
3) Keep at least half your portfolio in dividend paying stocks
4) Consider dividend yield the least important factor in analyzing any stock
5) Be quick to take losses and reluctant to take profits
6) Never put more than 24% of your portfolio into securities about which detailed information is not readily and regularly available.
7) Avoid inside information as you would the plague
8) Seek facts diligently, advice never
9) Ignore mechanical formulas
10) When stocks are high, interest rates rising and business prosperous, at least half a portfolio should be placed in short term bonds
11) Borrow money sparing, and only when stocks are low, interest rates are low and falling and business depressed
12) Set aside a moderate proportion of available funds for the purchase of long term options on stocks in promising companies when available.