Wealthmaker: 3 Steps to pick growing stock
Stock-picking model: Three steps to earn 100% in stock market
What to Choose: Background/ Value of a company
Financial health, or what we called, fundamental of a stock, is undeniably the most important skills an investor must learn to harness. Warren Buffett, one of the most legendary value investor, takes a long view and analyse a company’s financial background thoroughly before holding a stake in the company. There are three main criteria in practising value investing:
1. Sustainable Business Model
2. Good Leadership of Company Management Team (The Brain)
3. Stock Price is undervalued ( Below intrinsic value)
When to Buy/ Sell: Timing
Trader/ Technical Analysis, are best to evaluate the timing to buy/sell stock. Different trader practices different strategy when employing technical analysis skills: holding period, type of technical indicator etc. However, some value investor do combine their strategy so that they buy/sell stock at the best timing.
When will the Stock Prices Rise: Theme
In some circumstances, the company has strong financial background but share’s price remain stable throughout the year without big fluctuation. This is mainly due to the scarcity of factors/ theme to excite investor. In picking a growing stock, investor/ trader must sometimes evaluate whether an exciting event will stimulate the share price to drop/ rise before performing buy/ sell order.