This topic is much relevant and catch my attention on my weakness and issue facing all the while.
all the while the trading and investing method and ideology is totally wrong. miss out what is trading and what is investing method.
1) Trade and Invest differences
The problem is most of the time want to do trading but spend all time go thru financial report or QR.
trading shall be straight forward. focus on momentum and strength only.
Investing shall be long term and fundamental base. shall refer to intrinsic value not the price it seem.
confuse among these 2 will resulted in loss.
2) Shall have a trading journal to monitor and record down each trade and review on the reason buy/sell and lesson learn.
Benefit
1. Uncover patterns
2. Avoid repeating mistakes
3. Identify weakness and strengths
4. Know your emotional state - greedy, fear, clueless,panic?
5. What could have done better ... e.g. put a buy/sell stop limit
6. Enable you to develop a unique trading system/strategy that is suitable for your trading habits, behavior and personality
3) To mitigate this emotional things.
1st Method is Buy and sell in stages
2nd Method is Earning Yield = Earning Per Share / Current Share Price
3rd as below, review performance periodically and re balance if needed.
3rd as below, review performance periodically and re balance if needed.
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