Author Topic: STOCK MARKET GUIDES FOR NEWBIES LIKE ME  (Read 651 times)

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GreenMoney

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STOCK MARKET GUIDES FOR NEWBIES LIKE ME
« on: May 27, 2012, 12:29:44 AM »
Sa mga baguhan din sa pag iinvest at sa trading sa Stock market. Some pointers here to consider

1. Don't be greedy: Invest smartly, with some professional help and some study on your own.

2. Avoid 'hot tips': Stay away from 'experts'. Use your own judgement.

3. Avoid trading/timing the market:

4. Avoid actions based on sentiments: Don't be emotionally attached to stocks:

5. Don't panic if the market drops: Hold onto your winners and sell your losers.

6. Stay invested, possibly continue to invest more: It is natural to book profits with the markets at higher levels.


7. Buy stocks if there is a 5-8 per cent drop in the market: In this bull market, a 5-8 per cent drop in prices offers you a good opportunity to buy scrips.

8. Avoid checking the price of stocks or mutual funds after you've sold them:



9. Avoid penny stocks:

10. Diversify: We suggest you diversify a bit, looking at stocks, mutual funds, commodities and gold. (I disagree with this one in form at least)

11. Don't commit large amounts of money: Even if you have a strong risk-bearing capacity, we suggest you do not commit large sums of money at this stage.


12. Don't trade for short-term

13. Don't expect to be a millionaire overnight. Patience pays, so be realistic. 14. Stick to the desired asset allocation: Asset allocation is the key to successful investing, say experts. Even though equities may outperform debt substantially, it will not be wise to put all your investments in equities.

14. Distinguish between stocks for keeps and trading: A variation of "never let a trade become an investment."

Buy with adequate margin of safety: That's where attractive purchase prices can help. As a matter of fact, selling stocks is no different from buying them. Keep a sufficient margin of safety when buying a stock and don't rely on making a good sale ever.

15. Sell when value is realised: If you feel that your investments are adequately valued, you should exit regardless of how long you have held them.

16. Keep a watch on relative valuations: The real cost of a stock is not the price you pay for it, but the opportunity cost of not putting your money in another one.

17. If you realise a mistake, exit immediately

18. Start investing early.

19. Try to invest in things you know.

20. Try to adopt a long-term perspective with regard to investing.

21. Know your risk: Understand the level and amount of investment you are comfortable with.

22. Play safe, invest in a mutual fund: For those who are still not sure about their research, use mutual funds.

23. Encash when stock prices dip: Reduce some exposure, lock in some profits.

24. Don't blindly follow media reports on corporate developments, as they could be misleading.

25. Don't blindly imitate investment decisions of others who may have profited from their investment decisions.

26. Don't fall prey to promises of guaranteed returns.

Note that these rules are universal, and apply anywhere in the worlkd, as they are based upon Human Nature and behavior

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STOCK MARKET GUIDES FOR NEWBIES LIKE ME
« on: May 27, 2012, 12:29:44 AM »

Mountain View

IntraLover

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Re: STOCK MARKET GUIDES FOR NEWBIES LIKE ME
« Reply #1 on: May 27, 2012, 01:23:53 AM »
Just like you am also a newbie..

So I just follow the guides/rules that fit my trading style.

My take on trading/investing in stocks are:

1. It is a better option than bank savings.

2. Monetary speaking, I will never loss. I just need recovery time, the same time as you would have to bid on savings.

3. With limited resources and the intent of knowing the ups & downs of stock market, I am both a trader & investor. I have stocks for long term that gives me good dividends (cash & stock) and short-term stocks (1 week).

4. I don't care if the stock is overbought or not as long as I can still see an upward movement & profit from it then I'm on it. I just look at the current volume, trend & candlestick pattern for the day & compare that on previous day/s to determine if there is still room for upward thrust. This has not failed me so far.

5. There are several stocks to choose from, so I consider everyday as a good trading day. As long as I have purchasing power to use, I make sure to use it. Even during the September sell-off, not all stocks were red. Waiting for the "right time" for higher profit leans towards being greedy. A little profit a day is good for me.

6. I favor to buy shares coming from long trading halt/suspension. Usually holders of these stocks tend to sell-off eagerly when suspension is lifted. Imagine how much profit I gained from LMG.

7. I kept a schedule of stock's dividend declarations, so I make sure to buy those stocks ahead of time before massive buyers start to jump in. I then compute for unrealized profit with the stock's current price and compare it with the gains I would get from the dividend. If I would be getting a higher profit with existing price than the dividend I would be getting, then expect me to dump all shares before ex-date.

Like I said, I'm just a newbie. I still have to learn a lot. So far, this is what I'm comfortable with. I know I may have to adjust my trading technique in the future.

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Re: STOCK MARKET GUIDES FOR NEWBIES LIKE ME
« Reply #1 on: May 27, 2012, 01:23:53 AM »

 

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