Stock Pick Strategy:
Key of Stock Pick is to find a list of Good Company and put them in our watchlist (then perform a Valuation for each counter and only purchase when undervalue/fair value. Depend on whether you are Technical or Fundamental base. For me, I use Fundamental Analysis for my stock pick as I not really good in technical analysis, to be easier for me to manage, I keep my watchlist around 25 - 40 counter around the world.
How to get start from 900+ company in Malaysia? (or 5000+ company in US)- Understand various Fundamental Analysis Indicator first.
- - There are lot of Indicator like ROE, EPS, Net Margin, Gross Margin, Debt to Equity Ratio available for Fundamental analysis.
- - People often confused with Fundamental Analysis Indicator vs Valuation Indicator. Please take notes, during Stock Pick/create watch list, we shouldn't use any kind of "Valuation Indicator"
- - Valuation indicator like "Price to Earning Ratio", "Price to sales Ratio" (all kind of indicator that related to Share Price). If we use any of these, we might miss out some good fundamental company.
- - All indicator need to mix and match, no single indicator can tell you whether they stock is good or not. Most of the time i use at least 3 indicator.
- Utilize filtering function of various Investment Website.
- - Website like Investing.com, TradingView, KLSE Screener are my frequent tool to filter company with the fundamental analysis indicator.
- - Anyway , we need to be careful when using these Website as some of the data might be wrong/delayed. Always cross check annual report for the result you get.
- Youtuber, Social Platform, Financial Analyst Recommendation
- - Thanks to internet, there are a lot of sharing available social media on particular company analysis.
- - Most of the time, I will listen to their sharing, then will further study if interested on the counter they share.
- Circle of Competency
- - Pick the stock that you familiar with. I am a programmer, so my circle of competency is on IT related Industry then i will tend to paid more attention on software/hardware/service I used everyday.
- - So we can pay attention on thing that we use daily, then for sure you can get some idea on what stock to buy.
Always Do Your Own Deal Religion Before Invest.