“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.”
— Peter Lynch
Peter Lynch, famous for leading Fidelity Investment’s Magellan mutual fund for 13 years, during which he averaged annual gains of about 30%, is right. You need to have a solid understanding of the stock market in order to profit from it — and to know the key mistakes to avoid.