Although investment and trading is not a rocket science, many people have summarized their winning strategies. You can shop any books on Amazon. You also can learn investment concepts and trading strategies from many websites, including Economic Signature. Strategies may be based on fundamental analysis, economic trends, and/or technical analysis. Regardless of the sources of strategies, investors should carry out their own rules and follow the rules.
Ideal strategies should buy low and sell high. It is impossible to pick the lowest and highest. As long as the strategies allow you to buy at a relative low and sell at a relative high with winning rates higher than the losing rates, the strategies can be adopted. Nevertheless, frequent mistakes made by investors are chasing high and selling low. The mistakes are due to human psychology. When you see others making money, you would like to jump into the market, but the action turns out to be chasing high. When the market tanks, your investment will undergo an amplified loss and you cannot tolerate any more loss, leading to selling low.
To avoid catastrophic losses, the governing power is “Be Patient for Your Trading Signals.”