There can be many methods/indicators – be it theoretical, practical or luck (maybe)? In my opinion, I’m more of the 40-30-20-10
40%: Research on the Company/Stock and anything related to the it. Basically, it’s questioning yourself – If you have $1mil, will you want to put this amount to invest in the Company? How much confidence do you have?
Taking consideration, if you have $1mil, will you want to invest in
$Apple (AAPL.US)$,
$Alphabet-A (GOOGL.US)$ $Amazon (AMZN.US)$ - will it be "Hit it right away" or something holding you back?
a. About Company
b. It’s management – leadership, events, how employees feel about working in the Company, etc.
c. Investors
d. CSR
e. How and what clients feel of Company’s product and/or services
30%: The theoretical analysis (numbering is not in order!) – but of course choosing what you are comfortable with.
a. Dollar Cost Averaging
b. Fundamental Analysis
c. Technical Analysis
d. Chart reading
e. Candlestick
20%: Reading on the news surrounding the Company/Stock, the Trend and what’s stirring the market:
a. Both sides of stories – good and bad news. Bad news which highly may cause it to dip – you might want to enter during it’s dip and sell when it bulls!
b. Surrounding as in its competitors – it might affect the stock one way or another. Taking an example the current rising trend in EVs (Electric Vehicles) –
$Tesla (TSLA.US)$ is rising, other companies in this industry is affected. They will feel pressured in many ways – having to beat Tesla in sales, finding ways in obtaining chips which Tesla managed to obtain, winning the hearts of buyers, etc.
However, think of it – there are many other car makers in this industry. If they could be the next 3 companies in managing to resolve the issue, it could benefit their stock value.
c. It could be some big shot influencing the stock to grow – example: meme stocks (
$AMC Entertainment (AMC.US)$ ,
$Twitter (Delisted) (TWTR.US)$ ) being influenced by a group of Reddit. Well, meme stock is a stock that captures online attention, mostly from a younger generation of investors on online forums such as Reddit. And ZOOM, it goes viral! However, it is usually not in line with its fundamentals.
10%: Luck! 🍀
I'm thankful to the someone who mentioned to me - Overall, it depends on your risk appetite. Depending on whether you are you a trader or investor. Indeed, it is important to know clearly what you want your portfolio to be like in order to know when to hit the “Trade” button. You can either buy dip and sell high and the other is to buy high and sell higher. However, are you the risk taker to buy dip and not having to worry the “what-ifs” it dips even deeper? Remember to do the research and study and have a ratio of your own that you are comfortable with being hitting the button!
kat kukuuu : Is luck only 10%?
Moo to Moon FTW OP kat kukuuu : hmm, my feel excited... maybe luck didn't come to me as of yet...
If you are very lucky, pass me some lucky charms pls!!
capper_ : People often attribute successful traders to their cleverness and diligence. However, this is far from enough. For investors, the key factor that controls the success or failure of a transaction is faith. The size of self-confidence determines the size of a person's achievements. .
Moo to Moon FTW OP capper_ : Thanks for your comment - it's good to learn and see how people think! I'm glad you commented..
Hope I did not offend you in any ways... My post may be opposite of what people think... I'm just sharing my POV...
Lei Chou : wow
Moo to Moon FTW OP Lei Chou : I hope its a positive wow..
Chee99 : ops
Moo to Moon FTW OP Chee99 :
Lei Chou Moo to Moon FTW OP : must
capper_ Moo to Moon FTW OP : This is why I like to communicate with everyone on moomooo, we can express our own ideas, even if they are different from others