[Economics study] The best stock timing, part 6. Other important selling instructions, etc.

Last Updated: November 21, 2021 Categories: , , , Tags:

Best Stocks Optimal Timing Study Part 6, Other Important Selling Guidelines, 21 Mistakes Investors Make Most

This book is a bit thick, but I wrote almost all of it because I wrote a summary in my own way. It'll probably end around part 7. I will write hard.

Before I start: This is a story I've been talking about... This summary is for my own study, but I've refined it a bit in the process of posting it on my blog.

Other important selling guidelines

  1. When incurring a loss, always stop loss at 7~8%, and realize profit when it rises by 20~30%. Of course, if you don't just sell it, but make an appropriate shape as a market leader that institutional investors buy, and then rise above 20% in 1 to 3 weeks from the point of purchase, these stocks can be the best stocks that will bring great returns in the future.
  2. If it's a bear market, get rid of credit, increase your cash holdings, and don't buy too many stocks. Even if you buy in a bear market, make a profit when it rises by 151 TP1T, and unconditionally stop-loss when it falls by 31 TP1T.
  3. In order to sell stocks, big-name investors have to become buyers and digest the sale. In that sense, in a situation where a stock is rising day by day, when great news is released and the cover story of an economic weekly magazine is enough to be published, you should consider selling it.
  4. When everyone is convinced that a stock will keep going up, sell when you're excited. At this point, it is too late. If the stock price rises and you die, then sell it.
  5. If quarterly net profit growth has slowed considerably for two consecutive quarters (reduced to 2/3...), you should sell in most cases.
  6. Be careful about selling when there is bad news or bad news. because it can be temporary
  7. Learn from the mistakes you've made while selling. You need to mark all the buy and sell points on the chart and look closely.
  • Once you have bought a new stock, draw a line on the daily or weekly chart to determine the level of stop loss when the stock price drops. The first year or two of a new bull market may be enough to hit the selling limit, and you can wait until the stock reaches the selling limit before selling.
  • Of course, if the stock has risen close to 20%, you should never let this stock fall below the buy price.
  • It takes time for the trend to rise. Unless you've reached a very climax level, you'll have to wait at least 8 weeks. If it rises above 20% in less than 8 weeks after purchase, if there is no support from institutional investors or if the industry as a whole is weak, you should hold it for another 8 weeks. These stocks are often the strongest stocks.
  • The best stocks can tolerate a slight dip below the 10-week moving average. If the profit is already large, it can withstand even a short-term correction of 10~20%.
  • If it is between 20 million won and 200 million won, the 5 stocks that you like the most are the most suitable. If it's 300,000 won, it's good to have only two revisions. Even if you have a lot of money, 10 revisions are good
  • It is recommended to buy a small amount each time the price rises 2~3% from the initial purchase price. Of course, it is also not good to chase and buy stocks that have gone up too much.
  • Diversification is good, but don't overdo it. Focus on a handful of well-chosen stocks and decide how long you want to hold each stock based on market conditions. If you have a lot of experience in investing, it's okay to use credit, but keep in mind that the risk increases significantly. Finally, you should not short sell unless you are confident in your judgment and actions. Use stock charts to find the best stocks and the best timing

21 of the most common mistakes investors make

  1. Persistently growing losses even when the losses are very small and can be tolerated
  2. Leading to a tragic end by buying when stocks are falling.
  3. Lowering the average purchase price rather than raising it
  4. Fear of buying even after breaking new records after forming the right shape without learning to use charts
  5. Failing to select stocks from the start because there are no appropriate stock selection criteria or lack of insight to find successful companies
  6. Lack of a general market view, not knowing when a correction will begin, when a decline will end and a new uptrend will be certain.
  7. Mistakes are becoming more and more frequent as a result of not following your own buy and sell principles.
  8. Deciding which stock to buy and not thinking at all about when or under what circumstances to sell the stock once the decision is made.
  9. Institutional investors do not understand how important it is to buy aggressively and buy stocks with good corporate content, and how important it is to use charts to improve stock and timing accuracy.
  10. Buying a large number of low-priced stocks rather than buying a small amount of high-priced stocks
  11. Buying stocks because you are tempted by rumors or rumors around you, or because you have heard a stock split announcement, new news, optimistic outlook, or recommendations and opinions from market experts who have appeared on TV.
  12. Selecting second-class stocks because of greed to receive dividends or being deceived by a low P/E ratio
  13. Trying to make money too quickly too easily
  14. Buying only stocks of familiar traditional companies
  15. Failure to properly understand or follow what is good information and good advice.
  16. Holding on to stocks that have lost money and easily selling stocks that have gained profits even if they rise slightly
  17. Worrying too much about taxes and fees
  18. Overinvesting in futures and options to get rich overnight
  19. Making a reservation order with a set price in advance when ordering buy and sell, rather than trading at the market price
  20. The inability to make a decision at the moment when an important decision is needed
  21. Inability to see stocks objectively

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