Know yourself and your enemy to win a thousand battles
my rule no. 1 is to really know the company very well inside out before you even spend $1 to invest in the company. This mean you need to read and understand all about the company info such as the finance report, understand how they make money, who are their competitors, is there any moats against the competitors, etc
It takes a lot of time and practise but over time you will get better at it.
Once you are confident that this is a good company you want to invest in, you can allocate a portion of your fund into it.
Should the share price dropped 50%, you will still be able to sleep well at night. This is because you have done all the research and you know it is a good company. In fact you will buy more of the shares because it is having a sales. The end result is something to celebrate for.
It takes a lot of time and practise but over time you will get better at it.
Once you are confident that this is a good company you want to invest in, you can allocate a portion of your fund into it.
Should the share price dropped 50%, you will still be able to sleep well at night. This is because you have done all the research and you know it is a good company. In fact you will buy more of the shares because it is having a sales. The end result is something to celebrate for.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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