(24) Stock Fundamental & Technical Analysis Alone Can’t Help You
It is one of the great rules for investing money in stock markets. You can’t consistently make money in stocks through technical & fundamental analysis alone.
A successful market timing is also needed to implement your analysis. Although, you can’t time the market perfectly but it can be done up to certain extent.
Your stock analysis must also comprise of optimization, data mining, subjectivism and other statistical tricks to make money in stocks.
[Read more: 17 Basic Rules Of Investing Money In IPO Stocks]
(25) Buy Damaged Stocks, Not Damaged Companies
It is one of the significant rules for investing money in stock markets. You should confine your research in selecting damaged stocks i.e. undervalue stocks instead of focusing on damaged companies.
Stocks that are undervalued will return to their actual value with time. However, it is often very difficult for a damaged company to return on a right track within short period of time.
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