Sunday, 14 April 2019

The science and art of Stock market

The axiom in the stock market: There is Time to Buy, Time to sell, Time to go Fishing.

Buying a share is Science.

As long as you buy a share with:
1.High EPS,
2.Low PE and
3.Low P/BV with
4.High Dividend yield and
5. With God blessing, everything will be fine.
6. It would be even better if you get a share with a low PE/Growth rate.

While Selling a share is an art.

As no one knows the top and bottom of a share.

We need to sell when the share gets above the fundamental of the company.

We sell a share when:
1. The share reach our objectives, whereby, the reason we buy is not there anymore or
2. The general market turn sour or
3. There is a political, economic or social risk ahead. Market hate risk or uncertainty.
4.When we need money.

No one has the crystal ball for investment, but, if we buy and sell with rationality, we will be all right.

The motto is "Win some, Lose some, Most Important Income"

Moral of the story: Buy when Mr. Market was selling and Sell when Mr. Market was buying.

Be rational when others lose their head.

May God bless us,

Dr. Lion.

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