Most of the trading is done by the pros. You have to be able to out-think them.
Well, you can’t expect to compete with short term traders with powerful computers. They are just picking up pennies in front of steamrollers anyway.
What you want to do is visualize two or three scenarios about how the world might evolve over the next five years, and cover that in your portfolio. You should not make any sudden changes based on market fluctuations, and you should be receiving a good flow of dividends regardless of stock prices.
That is my formula, and it has worked over the long term. Naturally I’ve had losses, everyone has. I need them to offset my gains.
One final point: do not put more than 3% of your financial net worth in any one security, nor more than 20% in any one sector.