2. DO not try to catch a stock which has already moved past your risk taking capability.
3. Remember to buy quality stocks in sale and same happens during market panic mania. Alternatively one can make it as a systematic investment plan tool to make money as stocks beat all forms of investment.
4. As a smart trader buy undervalued fundamental stocks and only invest in companies which have quality and professional managements. Look for PE ratio, dividend payment record and growth while buying stocks.
5. Smart investor buys stock which have been growing for a past few years.
6. Do not buy stocks which represent loss-making companies.
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