Investments should not be based on price movements!

Your buy/sell investment decisions should never be based solely on price movements like how traders use technical charts. There should be an investment thesis that guides your logic. Focus should be on performance of the underlying business, strength of the balance sheet, amount of leverage, potential value of the business years down the road in terms of incremental returns on capital, cash flows etc. This will enable you to make decisions based on the fundamentals and help you distinguish between external stock market forces driving a stock price as against business reasons. It will reveal to you whether potential growth in value is mispriced by the market or not.