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?
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
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.
thanks for the replies. Hehe maybe can’t keep watching stocks cafe everyday also.
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.
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 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 . 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
I thought u bought CRCT?
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
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.
Investing in high dividend yielding companies is a better choice.
I second that
Yes get paid while waiting. Doesn’t have to be high dividend yield. Decent wilk do
I keep a watch out on the debt level of the company before I buy. =)