Share Synthesis

This unprecedented 2009 financial crisis have helped me to learn quite a bit through the hard way.. My portfolio total value has shed around 50% since inception so I have been wondering is it a wrong move to buy and hold? It's always easy to answer such question on hindsight using present information which are unavailable at that point of time. I was and still a firm believer of fundamental analysis but with the lack of information which are sometimes inaccessible to retail investors, can we still make a soundly judgement ? How confident can we be that the stock is still fundamentally sound when it's fundamentals are changing dynamically. There are currently too many weaknesses in my strategy therefore I will try to improve on it based on the following points which I will be exploring further.


1. Lack of risk management
Need to think of a way to spread my portfolio risk.. Having say that, I don't intend to over diversify or use beta/variance to diversify risk..  I'm thinking of aligning fundamental analysis to risk management.


2. Emotions(behavioural finance)
Investors are sometimes their own worst enemies and personally, I am a victim of my own emotion (i.e averaging down a company's stock even when its prospect seems to be not as good as last time) .. Best way to overcome such problem is to create a system and stick to it rigidly.


3. Strategy
I am currently using fundamental analysis to buy/sell stocks but personally, I think there are some downsides for retail investors like me to use this 100%.(i.e a we are just minor share holders therefore we cant actually change the company fundamentals like what the great sage Waren Buffett does) .Can technical analysis blend with fundamental even though they oftenly contradict each other? Need to devise a rule to sell stocks.....


My journey to create a strategy starts here and I will be using the stock market to experiment it.. When I first started investing, I have used paper trading to test my strategy but for now, I think real $ should be used instead because emotions will be involved and this is one point which I hope to overcome.  I will try to jot down all my findings and thoughts and if possible , I hope readers (if any) can give some feedback .. Criticisms are strongly welcomed