The following have been included in my books. Due to their importance, it is repeated here.
Market Timing. Technical analysis (such as death cross using SMA-20 and SMA-50) is more important than fundamentals as illustrated in 2020 and 2021.
So far and since WW2, the year before the election is usually bullish.
Weigh more on the strategy or strategies that perform well recently. In early 2022, it is shorting stocks to me.
Screening stocks. To illustrate, I got 30 stocks from a screen. I wanted to limit the number. You can do one of the following:
Tighten your search criteria.
Only use the first 10 stocks sorted by your specified metric such as P/E with P/E > 0.
Do a quick analysis and skip the stocks such as foreign companies, high debt / equity, high insider dumping, high short % (but less than 25% for possible short squeeze), etc. – do the opposite for shorting stocks.
Further evaluate the screened stocks with the appropriate metrics.
50-50 guesses. Many make good money even with a 50-50 chance of guessing the outcome of the stock bought by: 1. Reduce positions on risky stocks and 2. Use stop orders to limit the losses and trailing stops to let the profits rise.
Greed and fear. Do not let greed and fear affect your trades. Greed is fine if you use trailing stops as illustrated in 2000. The most profitable time occurred in April, 2019 as indicated by the golden cross (I call it Early Recovery).
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The above is from my book Investing Lessons: Successes and Plunders.
https://www.amazon.com/dp/B09L8NVJNH
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