The Fundamentals of Trading Stocks - #4
Do your homework. This known as doing your DD (due diligence). If you are ready to trade in a stock, have you read that company's SEC reports? We call these clues. Five years from now, if Ken Lay was the CEO of a publicly-traded company, would you know? If 500 million new shares just got issued and the BOD was selling, in mass, would you know?
"When in doubt, empty the clip."