02-08-2021, 12:53 AM
I believe that there is no answer for the best way in boutiques market investing, as it differs between everyone because all of us have different risk appetite, attitude, perception, fondness, way of thinking etc. We just need to find it out ourselves. Fundamental analysis is still the best way in stock market investment. FY09 / FY10 /FY11 /FY12 was when I was extremely busy for various reasons and no time to evaluate investment positions. We all know the reasons behind the mid August stock market slump especially in emerging markets - the impending tapering of QE in US and the fear of Syria war. Should I accumulate more shares at lower price or sell now in anticipation of another stock market slump? When you practice pure fundamental analysis, sometimes you see the share price goes up & down like a roller coaster that makes you think that why not you use various technical analysis indicators to buy and sell? If I sell my shares earlier and buy back at lowest point, then it is a perfect scenario.
The longer you play the chart, the more experience you have on investors/speculators mind & behaviour, then the more chance you can make profit. Cannon slashed profit estimates last night in Asia by 25% and more selling could hit those stock markets overnight which would effect our stock markets for Tuesday, 10/28/08. Will stocks go up tomorrow? As a result, I see my overall paper profit falls almost 60% at one point. Further, the easing of lockdown restrictions in most of the world is likely to help consumer demand, benefiting the overall business scenario. No business aims to incur a loss which is why it is important to do careful planning of the production. Many people, especially business people understand this principle and if reading this article, will respond with aduh! I wildly guess that more than 75% of the retail investors use the price movement to buy & sell shares for short term gain, that's why technical analysis works, but only the more experienced one will win the most.
If you buy at RM1.06 in end of Sep 2011, you would have gained almost 50% when the price advanced to RM1.56 in Nov 2011. But if you keep the shares, it drops to RM1.20 one month later. You may just sold the share according to your judgement but the next few days the price shot up until you feel it is too high to buy, and the price keep on moving up and because of your reluctance to buy at higher price and anticipating it to drop, eventually you pay the price for not owning a good share. Should you sell now and buy it low later? Are you spending too much time on investing or trading now because your career has no future or you are blacklisted by your boss at work? For speculators, perhaps it does not matter much. I think this is very much depends on experience. Now even though most share price slowly crawl upwards, I think it is unlikely to reach previous peak within this year. Locally, while 20sen increase in RON95 petrol price may reduce some financial burden faced by the government, it surely will increase the cost of living and affect investors' sentiment.
The longer you play the chart, the more experience you have on investors/speculators mind & behaviour, then the more chance you can make profit. Cannon slashed profit estimates last night in Asia by 25% and more selling could hit those stock markets overnight which would effect our stock markets for Tuesday, 10/28/08. Will stocks go up tomorrow? As a result, I see my overall paper profit falls almost 60% at one point. Further, the easing of lockdown restrictions in most of the world is likely to help consumer demand, benefiting the overall business scenario. No business aims to incur a loss which is why it is important to do careful planning of the production. Many people, especially business people understand this principle and if reading this article, will respond with aduh! I wildly guess that more than 75% of the retail investors use the price movement to buy & sell shares for short term gain, that's why technical analysis works, but only the more experienced one will win the most.
If you buy at RM1.06 in end of Sep 2011, you would have gained almost 50% when the price advanced to RM1.56 in Nov 2011. But if you keep the shares, it drops to RM1.20 one month later. You may just sold the share according to your judgement but the next few days the price shot up until you feel it is too high to buy, and the price keep on moving up and because of your reluctance to buy at higher price and anticipating it to drop, eventually you pay the price for not owning a good share. Should you sell now and buy it low later? Are you spending too much time on investing or trading now because your career has no future or you are blacklisted by your boss at work? For speculators, perhaps it does not matter much. I think this is very much depends on experience. Now even though most share price slowly crawl upwards, I think it is unlikely to reach previous peak within this year. Locally, while 20sen increase in RON95 petrol price may reduce some financial burden faced by the government, it surely will increase the cost of living and affect investors' sentiment.