My personal strategy:
Rebalance, only if
1. The fundamental of the company is still the same or even better.
2. Cheap sell due to the EQ of "investors".
3. It is already cheap enough.
Hold, only if
1. The fundamental of the company is still the same or even better.
2. The market price drops due to the EQ of "investors".
3. It is still not cheap enough for rebalancing. (Maybe we need to wait for another 20% discount, for example)
Cut loss, only if
1. The fundamental of the company is changed (become worse)
2. It is expected its earning will have negative impact.
For example, some companies unable to transfer its cost to its customer, so the profit margin or the company will reduce. If this condition still remain, at the end of the day,
So, as you can see, the first thing to do is to evaluate the fundamental condition of a company based on your homework and personal experience. That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage.
Written by: Xaivier Chia
|
No comments:
Post a Comment