Be a shrewd investor

1. For individual stocks: buy low and sell high.
2. For the portfolio of stocks, through the strategy of rebalancing and asset allocation: buy when the market is obviously low and sell when the market is obviously high.
3. Refrain from buying when the stock or market, is obviously highly priced.
4. Even in a high market, you may be able to seek and buy undervalued stocks.
5. A beaten down stock maybe worth a look. The price may have discounted all the negatives making it undervalued, provided its long term fundamentals are intact.
6. It is common for stock price to fluctuate; prices can go down by a third from the high and go up by 50% from its low. A true investor cannot hope to profit from this on a consistent basis. He invests for the long term dividends and long term appreciation in the stock price.