Being a stock investor is a constant learning journey. No matter how experienced you are, you have to keep learning or keep remind yourself not to forget what you have learned. From the super bull this year to the bearish outlook now. It is worth to note down a few points that I have learned.
Be your own man. I guess it is a human nature to be influenced by people. We tend to believe other people's argument more than our own research. Back your idea with solid research, it is worth to hold on to your belief.
Keep your buy list handy. Do the proper research during your free time. Once you are convinced the stock is worth a buy, set your target entry price and wait for opportunity. Don't buy base on other people's hot tip. The hottest stock now could cool down few months down the road.
Don't buy too expensive. When a big news is released, the stock price often react to it and eased off gradually. You buy at the peak, it would take quite a while to reach another peak.
Every dog has its day. An average company would have few quarters that is doing very well. A good company would have few quarters that is doing average only
Project based company is dangerous. The earning could be impacted by project delay etc. On the contrary, consumer goods company's earning tend to be more stable.
Set your portfolio allocation ratio right and stick to it
Stay away from electronic and technology stock. If you think you can catch the cycle, think again.
The list does not end here, so as the quest to become a good investor. I would need sometime to do a good reflection and consolidate the idea again.
Welcome to share your thoughts in comment.
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