How do you all deal with stocks price crashing


#1

We all know we should buy when prices are cheap and sell when it is expensive, but after investing for 6 years, i realized it is really hard to follow. How do you guys do it?


#2

For me, I focus on CostYield.

As long as the dividends collected yearly (or monthly) and CostYield year after year is good (~5% or more), then I am happy :slight_smile:


#3

I only buy at prices below 5-yr historical mean average. It’s an aga aga figure that I estimate from the chart because I can’t find any tools with that calculated figure.

I sell when fundamentals don’t make sense anymore, or when there is sudden price jump of 40% within 6 months which are not fundamentally driven.

Rest of the time, just ignore everything you hear about the market being bear or bull.


#4

thanks for the replies. Hehe maybe can’t keep watching stocks cafe everyday also.


#5

Guys just an update, after not watching the markets everyday I am thrilled to see the stocks that I want to buy crash lower. Lower means more room for growth.

Previously I was having problems as I didn’t really do a clear entry and exit plan. So I kept on averaging down and the stock kept on going down.

By having a plan and sticking to it, I realised that investing is actually kind of boring and boring makes you money. :slight_smile:


#6

First there is too many cheap stock. But you dunno how long it will stay that way. 1 think I have learn don’t buy just because you have cash on hand. Just like hotel Transylvania, u need to feel the zing. Once you have it, you know that is the biz you wana own. If got doubt, its very hard to keep the stock long :frowning: which I ended up in a bad trade.

I try to do DCF and buy with a minimum 40% MOS, but the stock can drop below 50% MOS :frowning:. But I know What i buy is value, althougth the next lucky guy buy at example FB at 130 and I have avg down till 161. What to do. Lucks play a part in investing.

not watching is a double edge sword. u can miss or found opportunity, Best to find a way that you are fine with the volatility. After 1 year of investing in grow/value stock, I got better now with some tuition fees paid to Mr. market


#8

I thought u bought CRCT?


#9

I learned to avoid highly speculative stocks and buy solid dividend paying companies. But sometimes, I still make mistakes like Hyflux, Noble etc … I thought they were blue chips :frowning:

I also resist the temptation to chase after stocks that have spiked up quickly.

I tends to buy stocks when they are near the bottom and average down as they continue to decline.


#10

Investing in high dividend yielding companies is a better choice.


#11

I second that


#12

Yes get paid while waiting. Doesn’t have to be high dividend yield. Decent wilk do


#13

I keep a watch out on the debt level of the company before I buy. =)