My Investment Strategy

5 Steps Investment Strategy

1. Selection
Find Stocks with healthy financial status and have good future demand. Financially, I'll look at the NAV, EPS, PE, Revenue, Profit Margin, ROE and sometime Yield. You may find the under valued base the financial report and growth stocks base on company's report as well.

2. Preparation
Set rules for entry and exit, and wait for the buying signal. For technical analysis, I'll look at Price movement, Volume, RSI, stochastics and MACD. (For start, you may set up a simulated portfolio to test your strategy without using any real money. You may modify your strategy until you get a positive results.)

3. Initial Entry
Once the buying signal is shown, buy in smaller quantity first. Maybe half or one third of your intended amount.

4. Full swing
Once it starts moving up and show more positive strength, you may buy in more.

5. Selling
Sell once it hit target selling price, selling signal is shown or when cut loss level is hit.

It looks simple but most important is our own discipline. Need to follow strictly to the rules that have been set. Especially come to cut-loss, when the level is hit, we just need to sell. Don't be affected by our emotion ie. greed and fear, as this may be our killing factors.