Gone of the old day (as newbie) when I just invest base on what other people said (friends, collegues, newspapers and even BANKS!). I’ve even lost money after listening to Bank’s “RECOMMENDATION” investing in mutual funds and currency. I also had a chance to learn from a new friend who previously was a remisier, the dark side of the stock market. “Someone” is just out there to make money from the retail investors like most of us. Those were really painful lessons as I threw away my hard earn money to make someone rich.
Fortunately, I took action to better equipped myself to continue to play in this investment game. I consider myself a better investor now with the knowledge I acquired from the investment workshop.
There are 3 parts of homeworks I do before putting my money in particular stocks:
- Identify and select a good stock / company with a good business.
- Value the stock price to see whether it is undervalue.
- Plan my entry point and exit point. Do technical analysis to determine the right time to buy and sell.
I will share these 3 parts in detail in the subsequent posts.