Zurich Axioms
it was formulated by a group of Swiss brokers on the Wall Street after the Second World War. Some of the most important axioms on successful investing are:
Risk Worry is a sign of health, not sickness; if you are not worried, you are not risking much.
Greed Take your profit too soon. Conquer your greed and become a better speculator than 99% of others.
Hope When the ship starts to sink, do not pray; jump.
Forecasts Do not trust anyone who claims to know the future. What is happening is more important than what is likely to happen. Pattern Chaos prevails in the stock market; it becomes dangerous when chaos begins to look orderly.
Mobility Striking roots impedes motion. Be ready to jump away from trouble and seize opportunities.
Intuition You can trust your hunch only if you can explain it.
Religion and the Occult God is not the slightest bit interested in your bank account. His plan for the universe does not comprehend your bank balance.
Optimism Learn the difference between optimism and confidence. Optimism is merely hoping for the best, whereas confidence is the knowledge that you can handle the worst.
Before putting your money down, work out what you will do it things go wrong; if you can, you have confidence.
Consensus Ignore majority opinion; do not move with the crowd.
Stubbornness If you have made a wrong move and lost money, forget it; by waiting or repeating your move you do not get it back. Make a different move to get back your money. Planning Long – term planning presumes that the future is under control. It is not. Remember, stock markets are irrational.
Follow these principles and stop losing money. That’s the surest way of making a lot of it.
Zero Coupon bond.
A zero-coupon bond (also called a discount bond or deep discount bond) is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity.[1] It does not make periodic interest payments, or have so-called “coupons,” hence the term zero-coupon bond. Investors earn return from the compounded interest all paid at maturity plus the difference between the discounted price of the bond and its par (or redemption) value. Examples of zero-coupon bonds include U.S. Treasury bills, U.S. savings bonds, long-term zero-coupon bonds,[1] and any type of coupon bond that has been stripped of its coupons.
In contrast, an investor who has a regular bond receives income from coupon payments, which are usually made semi-annually. The investor also receives the principal or face value of the investment when the bond matures.
Some zero coupon bonds are inflation indexed, so the amount of money that will be paid to the bond holder is calculated to have a set amount of purchasing power rather than a set amount of money, but the majority of zero coupon bonds pay a set amount of money known as the face value of the bond.
Zero coupon bonds may be long or short term investments. Long-term zero coupon maturity dates typically start at ten to fifteen years. The bonds can be held until maturity or sold on secondary bond markets. Short-term zero coupon bonds generally have maturities of less than one year and are called bills. The U.S. Treasury bill market is the most active and liquid debt market in the world.