Thursday, August 14, 2014

My Own Stock Strategy Plan, Do you have one?


1. Buy only company with good fundamental value.

2. Before buying and or selling, check the technical Indicators. As much as possible buy only when MACD is at lowest point or when just about to cross the line upward. And, sell when at highest point or when just about to cross the line downward.

3. Don't speculate that the stocks will further go up when MACD is at highest point, exit already, if it does go up further, don't ever feel regret. Be thankful.
 

4. Likewise, don't speculate that the stocks will further go down when MACD is at lowest , buy it already, if it does go down further. Cheer up. Don't ever feel regret. Be happy still.

5. Remember, you cannot predict the future. If you buy and or sell at a wrong timing. So be it. Sometimes you lose sometimes you win, it happens. Be thankful always.

6. Remember 'The Sunk Cost Fallacy'

  • Misconception: You make rational decisions based on the future value of objects, investments and experiences.
  • Truth: Your decisions are tainted by the emotional investments you accumulate, and the more you invest in something the harder it becomes to abandon it.

For this reason be FIX, if your lose already at 10% and has no good news. Exit already.

7. If within months the strategy is not working. Think twice and come up with new strategy. Never feel regret that it did'nt work. Treat it as a learning experience.

-End-

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