KiasuParents - Parenting in Singapore

Wondering anyone here invest in stock market. I have the weakness of selling and buying shares at the wrong price and wrong timing. Any advice please?

Trying reading up on Peter Lynch's: One up on wall street and Benjamin Graham's: The intelligent investor

On my end I follow the investing nature of Warren Buffett and Peter Lynch. Taking the stand of a long term investor.

(1) Invest only in companies that you KNOW. (eg. if I only know peanuts about the Oil industry, it wouldnt be wise for me to invest in it. However, I am extremelt well versed in IT technologies and what is going on etc, It makes more sense for me to invest in IT)

(2) Research on the company. (e.g the type of management they have, the people they have on their board, what is their company core business, are they constantly reinventing their products? or are they diversifying overly in other sectors that is not their core business?)

(3) I will ask myself this question, Do i foresee the company still NEEDED by the market? Do i foresee that the services of the company might become obsolete in the next 10 years etc. Leave the guessing to someone, i recommend you do the reading and research.

Theres more to this so do read up

*Invest only when you have spare cash.
*If you are looking to make a quick buck, I would suggest, please dont.
*Do not do shorting of stocks or borrow money to buy stocks, Ive seen a few go bankrupt due to speculations

cheers

LLK wrote:Wondering anyone here invest in stock market. I have the weakness of selling and buying shares at the wrong price and wrong timing. Any advice please?

Hi LLK, the stock market can be a very expensive teacher.
I suggest you stop trying to rely on stock picking and timing. No one gets it right all the time.

I suggest you start with Exchange Traded Funds and do dollar cost averaging to spread out your purchases.

Pls also consider how much $$ you want to devote to shares, you should have a proper asset allocation plan that should include bonds, endowments, etc..to spread the risks and make your overall portfolio less volatile.

Just my 2c pointers.

1. Invest what you can affort to lose.
2. Buy when everyone is selling. Sell when everyone is buying (but this human emotion is the most difficult to control)
3. More people will lose $ in stock market than those who win. Yes occasionally we heard some ppl make big bucks but how many? Is it just luck or insider info (illegal!!!).
4. No matter what only the brokage firms is the ones who make $ regardless you buy or sell at high or low.
5. The reason why the media keeps emphasising those who made it big in stock market is to attract new comers with fresh $ into the market.
6. When you win just consider it as luck (10% of the investors). If lose just take it as normal (90% of the investors).