Thursday, April 29, 2010
How good is a stock analysis in predicting a stock direction? In fact, if they can achieve 50 marks, it's consider above average. For instant, if they recommend a buy on certain stock and it's already move up certain percentage, we are not encourage people to follow the trend. If you opt to buy, just buy a portion will do and must run away faster then other if there is any sign of reversal.
If they tell you to stay away from certain stock, then the opportunity of making money going to appear. We should use contradict thinking to avoid follow others to make investment decision. The reason is due to many people follow their advise, whoever want to sell already sold, hence the selling pressure will gone after a while, it's time to buy and collect good stock near the bottom.
Buy stock if there's a drop, if small drop, buy small portion. If big drop, buy big. No discount, then don't buy!