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Risk Assessment: Understand and assess your risk tolerance. Different stocks carry different levels of risk, and it's important to align your investments with your risk appetite. High-risk stocks may offer higher potential returns but can also result in significant losses.

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Investors employ various strategies in the stock market, including long-term investing, where they hold stocks for an extended period, and short-term trading, where they aim to profit from short-term price fluctuations.

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