Fundamental Investing

Investing is a two part game

shinado
Publish date: Mon, 23 Nov 2015, 11:02 AM
shinado
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Just a blog to learn and share fundamentals.

When I mention 'game', I do not mean that you can just play it like a punter or speculator. That's not investing at all. Might as well stick to the casino whereby the potential risk and payout is much higher and faster.

What 'game' am I talking about? Imagine managing a football or basketball team. How do you intend to get the best out of your players? What are the strategies to use to beat your opponent? Now, imagine your 'opponent' is the market and your players are the 'stocks'. What is your game plan to win?

The first important part is knowledge. Be it fundamental or technical analysis, use the knowledge that you have to good use. Just because someone intelligent or famous recommends a stock does not always mean he/she is right. Check the facts and figures. Do your own research and come out with your own conclusion. In the process, you get to learn as well.

The second important part is mentality. How would you react if KLSE crashes tomorrow? Do you lose sleep?  Do you panic sell? What if you found a good company but others are telling you it's not? Learning how to control your emotions and believing in yourself is important. Just imagine if one of the best football players in the world, Messi, does not believe in his own abilities. He would be a mediocre football player week in week out!

At the end of the day, these 2 parts are very important when it comes to investing. Combine both and may you be a successful investor!

Happy investing!

 

shinado

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