Even people who are avid followers constantly get played. My advice if you rarely follow them is to let the news trickle in through reputable channels (WallStreet Journal, The LA Times etc.).
Learn about the industry, it's history, the major players, and then try to see how the company you're interested in fits into the picture. There are communities (subreddits) dedicated to those companies and although they are biased, you can also check out the competing company's communities. Try to judge for yourself if you think that the product or service that the company offers adds the market value that their market-cap claims it does. See if you can learn about the company's customers and how they're doing. Hows the economy as a whole doing? What about geo-political / climate situation - how large a role does it play?
Then, wait. Let things soak in a little. Keep asking questions.
Of course, most people will never do this. I myself am a victim, and let me tell you - I've lost a lot of money by not doing my own homework.
Finance is one of those things I find interesting and would like to learn more about for "fun" and general knowledge purposes but (un?)fortunately, I'm not looking to invest. Maybe after a few years, who knows, haha.
Learn about the industry, it's history, the major players, and then try to see how the company you're interested in fits into the picture. There are communities (subreddits) dedicated to those companies and although they are biased, you can also check out the competing company's communities. Try to judge for yourself if you think that the product or service that the company offers adds the market value that their market-cap claims it does. See if you can learn about the company's customers and how they're doing. Hows the economy as a whole doing? What about geo-political / climate situation - how large a role does it play?
Then, wait. Let things soak in a little. Keep asking questions.
Of course, most people will never do this. I myself am a victim, and let me tell you - I've lost a lot of money by not doing my own homework.