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My habits of buying and selling shares
- By Jovi FindRich.com
- Published 08/13/2007
- Stocks and Shares
- Unrated
This is just a log of my habit of how I select shares, monitor the movement, and finally sell off. Some of these are based on the books that I have read. Currently, I am making some money from the recent turmoil in the stocks market.
Whenever the stock market crash, we will only hear the bad news and people getting burned. However, it is a time of greatest opportunity even though there is a question of recovery and time. By saying "greatest opportunity", I mean that it is a time to start looking at the price again and perhaps getting involved once again.
The following are guidelines for my own reference. We are still updating as we learn and it is no way authoritative, caveat emptor.
News
Firstly,
Everyone knows that news are one of major indicators. Always watch out for news and see how the market reacts to it.
The general guide is "Buy on Good News, and Sell on Bad News" (BOGSOB)
Recently, some investor practiced this, "Buy on Speculation, and Sell on (Good)News" (BOSSON)
So while news can be great, becareful of stocks that build up over the months, and immediately decline when the company releases their annual report. In some cases, the stocks remain low after this decline, while others have soared to greater heights after the initial sell-off because the business was doing very well.
If the stocks is climbing, always check the latest company news, volume and historical charts for supporting evidence.
Otherwise, they might simply be another BOSSON (climbing and waiting for coming news).
Picking A Stock
The strategy is to find a company which is doing well, and keep them on the watchlist. Note that not all company with negative EPS are definitely bad. Some of these companies have good projections and recent acquisitions or venture which is deemed favourable to investors. This is likely cause of surge in share prices in such company shares.
Buy a stock the following criterion is met:
1) The general market is stable, i.e. no major news that would cause a major dip.
2) The traded volume of a stock is very high.
3) The sentiment for the particular share is great even when fluctuating up/down.
4) Buy at the price in a stalemate where possible, when the stocks is traded within a narrow margin below a recent high.
Couple the above with stochastic, CCI and MA charts before moving in.
When to Sell
It is generally prefer to sell when hitting 10% of the share price, but this is not always the case. It is important to continue watching the buy and sell volume trend to check if there are big pockets in the uptrend queue.
Beware of small pockets of sale. Some sellers sold their shares in multiple smaller packets to mimic a wide "sell-down".
To be continued.
(Note: this article is published for sharing and personal reference. We are not responsible for the use of information in this article.)
Whenever the stock market crash, we will only hear the bad news and people getting burned. However, it is a time of greatest opportunity even though there is a question of recovery and time. By saying "greatest opportunity", I mean that it is a time to start looking at the price again and perhaps getting involved once again.
The following are guidelines for my own reference. We are still updating as we learn and it is no way authoritative, caveat emptor.
News
Firstly,
Everyone knows that news are one of major indicators. Always watch out for news and see how the market reacts to it.
The general guide is "Buy on Good News, and Sell on Bad News" (BOGSOB)
Recently, some investor practiced this, "Buy on Speculation, and Sell on (Good)News" (BOSSON)
So while news can be great, becareful of stocks that build up over the months, and immediately decline when the company releases their annual report. In some cases, the stocks remain low after this decline, while others have soared to greater heights after the initial sell-off because the business was doing very well.
If the stocks is climbing, always check the latest company news, volume and historical charts for supporting evidence.
Picking A Stock
The strategy is to find a company which is doing well, and keep them on the watchlist. Note that not all company with negative EPS are definitely bad. Some of these companies have good projections and recent acquisitions or venture which is deemed favourable to investors. This is likely cause of surge in share prices in such company shares.
Buy a stock the following criterion is met:
1) The general market is stable, i.e. no major news that would cause a major dip.
2) The traded volume of a stock is very high.
3) The sentiment for the particular share is great even when fluctuating up/down.
4) Buy at the price in a stalemate where possible, when the stocks is traded within a narrow margin below a recent high.
Couple the above with stochastic, CCI and MA charts before moving in.
When to Sell
It is generally prefer to sell when hitting 10% of the share price, but this is not always the case. It is important to continue watching the buy and sell volume trend to check if there are big pockets in the uptrend queue.
Beware of small pockets of sale. Some sellers sold their shares in multiple smaller packets to mimic a wide "sell-down".
To be continued.
(Note: this article is published for sharing and personal reference. We are not responsible for the use of information in this article.)
