Things are nowhere as simple as you think. There are many financial professionals as well as affluent uncles and aunties who pursue investment as a life long study, participate in the markets for decades or manage monies daily for a living and they still haven't reach a consensus on how best to invest.

That's because investment is more art than science and individuals will have different beliefs, experience, guiding philosophy and strategies in profiting from the market.

Anyone who comes to you with straight forward absolute "rules" is either inexperienced in the markets or spouting sound bites that he has no understanding of. Some of the soundbites widely spouted as "truths" include:

- risk level is highest for derivaties followed by equities followed by corporate bonds
followed by soverigns

- XXX instrument is for long term, YYY instrument is for short term

- Hang around brokers, bankers etc. for inside info

- Buy & hold is the best

- Trade with the trend

- Trade against the trend

- Buy stocks with PER or PBR or any other valuation metric below a threshold

- Blue chips are the best

- Higher dividend yield is good

- XXX technical indicator is the best

- Buy this country, but that coutnry, buy this industry, buy that industry etc.

- Don't sell during downturn because you are long term investor

- Leverage is good

- Leverage is bad

My only advice to you is this, read up as many different books & articles on the subject as you can. Talk to as many experienced people as you can. Talk to professional advisors if you want, but don't be in a hurry to buy their products.

Once you have at least minimal awareness of the different schools of thought out there, put some money you can afford to lose and try out those that seem to appeal to you. Do not hesitate to explore other strategies if your chosen way does not work at first.

With luck, you might be able to figure out a fairly consistent investment strategy that is unique to you in less than 10 years.