Know which stocks are investment-worthy: those which can be owned for a long time, and will give a healthy compounded growth. These would have performed consistently across the most important parameters over a 10-year period, thus showing the ability to manage results through tough economic cycles. Find out, if they also have a good long-term future prospect.
Knowing the full and fair price (MRP)—not the target price—of a stock, based on its fundamentals, gives you the edge to act confidently, even when the markets is volatile. Use this price and a Margin of Safety to arrive at an attractive price to buy a stock. Similarly, sell a stock when it is well above its MRP.
Build a diversified portfolio to reduce risk while enhancing returns. Know what is the maximum you can invest in a stock, when to enter and when to add, so that you can build a strong portfolio.