The Defensive Investor

"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." -Warren Buffett Before suggesting the strategies a defensive investor must follow in the stock market, let us understand who an investor is. An investor is someone who makes an investment with the expectation of a long term gain. On the other hand, a speculator or a trader reacts to the current market situation and tries to make quick money from fluctuations in market prices. An investor has more knowledge, than a speculator, about the enterprise in which he/she makes an investment. The investor can again be classified as an...