by Aspellian » Fri Sep 04, 2009 10:56 am
TOL: Selling stocks when market under pressure
- sell weak performing stocks first
- hold on to the stronger performance stocks - somehow they buckle the trends better - and interests are still strong. when market go back uptrend, they will also run faster.
eg. AusGroup and Ho Bee.
TOL: Buying growth stocks with high PE
when growth stocks keep on rising, PE keep on rising - it becomes too obvious to everyone that this is a growth stock. sometimes need to let the stock take a breather and consolidate its price. usually it will be better when it announce its full year results whereby historical PE are reset from 70 to 15... if good quarterly results and positive news continue to flow. then the stock have chance to go up further.
eg. Ezion
TOL: Dun have to buy all stocks in the stock lists
Do not over-diversify yourself. Just because a stock looks good and put on your stock list, you dun have to force yourself to buy it. Neither do you have to justify that you are diversifying.
If you have done your homework - fundamentals, price/vol action, market conditions etc, then buy the best of the lot.
keep to 3 stocks with the best potentials instead of >5-7 stocks.
but watch the 3 stocks with an eagle eye and ready to get out when anything drastic happens.
eg. Epure - put in watchlist but on hindsight - funddamentals not truly outstanding, water stocks not market flavour, price/vol action is weak.
PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE
"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet