Monday, September 3, 2007

Changing Method

Yup i have been away for a while and now a comeback.
I notice that my trading wasnt that good afterall. May b due to my lack of experience.
Now i have at least 6 months experience. Somehow i noticed that to be sucessful in stock market, you really need some insider tips and good forecast. Analysis also play part of it, financial, stock market sentiment, theme play. Between FA and TA i found that FA method is stronger than TA method. However i have concluded that by implementing both strategy is far better than just using either one method. Thanks to uncle Sam cause i have learned a lot from his blog how we should trade in a stock market. Below here is my newest strategy.

1) Analyze a stock that have a good fundamental (at least) a company with a good management and able to generate earning every quarter.
2) Interest. Buy stock that do have volume and interest. Unless you really can forecast that a company is the next billion money maker.
3) Identify speculative stock (volatile stock) even they are losing money the whole year. Then you can choose whether to buy or just ignore it.
4) After you picked the stock that you like, analyze volume and market sentiment regarding it. Know how to read a chart for market mood is an added bonus. Good forecast and holding power is needed.
5) Try to familiar and just stick to the favorite stock of yours, this way you'll know much better the stock performance, when it is cheap and when to take profit.

1 comment:

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