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Co-Wise: How do you set the stop loss point / profit target ?
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๐Ÿ”ฅ๐Ÿ”ฅ๐Ÿ”ฅ๐Ÿฆพ๐Ÿฆพ๐ŸฆพHow do you set the stop loss point / profit target ?๐Ÿฆพ๐Ÿฆพ๐Ÿฆพ๐Ÿ”ฅ๐Ÿ”ฅ๐Ÿ”ฅ

As a smaller and more prudent investor who is doing dollar averaging strategy now.

Main activities I do is to read financial statements, study the ratios, see the cashflow, see the past years performance. Not really spending the day worrying about the โ€œpointโ€ and the โ€œtargetโ€.

I stressed again that my strategy is based on an assumption that if I invest, the stock must be fundamentally sound. The financial reports must make sense, the ratio must be in the better positions.

Loss Point & Profit Target strategy does not really work well with dollar averaging strategy. Loss Point and Profit Target strategy is more for the speculators, who has a short time frame and expect to beat the market in shorter time frame. With expectation like bring some chips into casino. Expecting to come out of casino at the end of the day with more chips before exchanging and going back.

At the end of the day, I come into Moo Moo daily is not to find a position to take advantage of a buy or sell rush. If you wish to take position advantages then Loss Point and Profit Target is very important. You worry a lot about the best timing to buy and sell. If you do not get it, you feel very frustrated.

I had gone through that stage. Take position advantage without knowing the fundamental analysis indeed can help you make in a short spree but also can be a bad losing streak.

I personally think to if you want to invest time on Loss Point and Profit Target, casino is a better place to wack.

Enter stock market with basic financial fundamental knowledge. Know what the companies are doing, how much revenue they are making, how they are managing their cashflow, what are their debts. These are basics. That Everyone who want to come into Moo Moo need to know. There are a lot of free materials to learn, the ratios, how to read the reports, what to look out for.

Then when the basic skills are there, learn the charts. How the stock price move? The trend, the intersection points. Past days, months, years, whatever chart you like to read as a basic, maybe look at MAVOL & MACD trend lines. Once fundamentally you had analyzed that the company is performing ok, then start to read more about the technical charts. When to go in what is the best time to come out.

I think many who survive will tell you the same thing. i make not because I know how to set stop the loss point and how to set profit target. If the stock is good and consistent. Over a long period of time the stock price is moving up. Do stress yourself too much on set loss points or setting profit target.

Tomorrow I will come in and do my dollar averaging buying again.

I wonโ€™t want to convince myself my theory and strategy is wrong and coming daily to moo moo and set a proft target.

By the way, all the lessons for fundamental analysis and technical analysis learning materials are available at MooMoo. Please after reading my super long-winded sharing. Go and refresh what are all the ratio representing.

Good luck, My Moo Moo buddies!

Lets Moo Moo together!



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Buying value, buying future. Letโ€™s spot the value together!
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