HopeAlways
Excellent Contributor
joined discussion · Sep 26, 2021 20:45
Buying and Selling Stocks
There is no one best way to determine when to buy and sell stocks of$Dow Jones Industrial Average (.DJI.US)$,$Nasdaq Composite Index (.IXIC.US)$,$S&P 500 Index (.SPX.US)$. The chosen strategy depends on our investment goals, investment philosophy and investment time horizon. The investment strategy I follow is one based on Warren Buffett's value investing model. The stock investing decisions will be made on the basis of risk evaluation. The three main risks are company, valuation and earnings risks. When the underlying company is great in terms of management and shows consistently high profitability, the company risk is low. When we are patient enough to buy a fundamentally well run company with sustainable competitive advantage whose stock price is at a steep discount to its intrinsic value, our valuation risk is low. When a company's earnings remain strong, the earnings risk is low. Once we are able to find a stock that that signals low risk based on these three conditions, it is time to buy. Even if the price were to dip in the short run, as long as our investment thesis is still valid, our focus should be on long term gains as fundamentally strong stocks tend to always go higher in the long run. Whenever a negative change happens to any of the three conditions, it is time to sell. When it comes to selling, we may decide to sell stocks once the price gets close to their fair value which implies that there is limited upside left and we could then reinvest the proceeds into stocks with higher potential upside for better returns. $Apple (AAPL.US)$ $Microsoft (MSFT.US)$ $Alphabet-A (GOOGL.US)$ $Amazon (AMZN.US)$ $Meta Platforms (FB.US)$ $Tesla (TSLA.US)$ $NVIDIA (NVDA.US)$ $Visa (V.US)$
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Krel
:
Well said, I wish the opportunity will be so clear cut. Nevertheless, everyone needs to make their own informed decision base on his or her risk appetite. Good luck all.
HuatEver
:
Your virtue lies in your generosity to share the golden principles of trading. Bravo, this is one great Moomoo’s spirit for us, Mooers to adopt.
jasonleett
:
Clear, succinct and simple advice... But in actual practice... One needs more than this to profit consistently in stock investments... But it's a good start.
Mooers Lab :![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
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101767718 : Great tips on buying and selling stocks. The steps are so clear, very easy for read and follow![+1 👍](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f44d.png)
garay : Very good sharing! Value investing takes a longer term view. It’s wise to know when to let go
Spearhead : Great tips for sharings.
RRKN : Very useful.
Krel : Well said, I wish the opportunity will be so clear cut. Nevertheless, everyone needs to make their own informed decision base on his or her risk appetite. Good luck all.
102089245 : Really great strategy to use, thanks for sharing with us.![+1 👍](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f44d.png)
![muscle 💪](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f4aa.png)
![v ✌️](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/270c-fe0f.png)
Southern Eagle : Nice sharing on when to buy and sell stocks, really very helpful.![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
HuatEver : Your virtue lies in your generosity to share the golden principles of trading. Bravo, this is one great Moomoo’s spirit for us, Mooers to adopt.
jasonleett : Clear, succinct and simple advice... But in actual practice... One needs more than this to profit consistently in stock investments... But it's a good start.
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