For those working full time in non finance area, you have no time to monitor stock, even more no time to track the company progress. You basically have no idea what the company is going to do in future, even more no time to know the current status of the company.
Because of no time, you probably only buying 2 or 3 stock, and you buy probably because people say it's good buy. The risk of lack of understanding of the company is high plus the risk of lack of diversification is high, total risk borne is extra high!!
If you fall into the category of people above, I suggest you to leave stock market and hand the investment job to the expert, to asset management company.
If you follow the economy, the most you can do is top down approach, which mean start from the economy, determine which industry will perform well, then determine which sector will perform well, then select blue chip that represent the sector.
Never never try to invest in small capital company because you will never understand them, and so the risk is extremely high for you.
Never try bottom up approach, which mean search for good company or good business to invest in, because most probably you don't understand financial report, you don't have time to do research, and you don't have time to sit down and learn.
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