'Sell In May And Go Away'? Remember to come back
by ckchoy
Any chances 'Sell In May And Go Away' will happen this year? No idea, but remember to come back.
If it does happen, be determined, it could be a good chance to buy stocks at bargain.
How low will it go ?
Not a mean to guess what level to reach by when, instead we can use TA support lines to set your entry points and have a plan. Let's say, Entered counter ABC at price X, we can set a stop loss about -5% from you entry point to protect your capital and the upside target can set at 10%, 20% or higher. The reward/risk ratio looks good and the upside/downside probability could be 70-30. Means it may have 70% upside chances and 30% downside chances.
What stocks to buy?
For stocks selection, let's look at STI component counters or blue chips first - a more conservative/defensive area.
Stock Market is still the best place for investment because statistic shows it - Gambling vs Investing odd
How sure?
There is no such thing as 100% sure in stock Market. We must understand the Stock Market is dynamic. There are thousands of different combination of events may happen in the Market as every participant(a unit of Market may change his/her decision everyday, every minute, every second, every now and then. All those contribute Market movement. Hence trading/investment is always a probability, as long as you spotted a good opportunity, go for it and at the same time set a cut loss point because no matter how good or accurate your homework, there are still some chances Market may turn against you, hence you need a cut loss point to protect your capital. Come back another time, trade/invest in this way you will be a winner in long run.
You see I use capital letter for Mr Market. Yes it is a superior character, just treat it as God, what it tells you is always right.
by ckchoy
Any chances 'Sell In May And Go Away' will happen this year? No idea, but remember to come back.
If it does happen, be determined, it could be a good chance to buy stocks at bargain.
How low will it go ?
Not a mean to guess what level to reach by when, instead we can use TA support lines to set your entry points and have a plan. Let's say, Entered counter ABC at price X, we can set a stop loss about -5% from you entry point to protect your capital and the upside target can set at 10%, 20% or higher. The reward/risk ratio looks good and the upside/downside probability could be 70-30. Means it may have 70% upside chances and 30% downside chances.
What stocks to buy?
For stocks selection, let's look at STI component counters or blue chips first - a more conservative/defensive area.
Stock Market is still the best place for investment because statistic shows it - Gambling vs Investing odd
How sure?
There is no such thing as 100% sure in stock Market. We must understand the Stock Market is dynamic. There are thousands of different combination of events may happen in the Market as every participant(a unit of Market may change his/her decision everyday, every minute, every second, every now and then. All those contribute Market movement. Hence trading/investment is always a probability, as long as you spotted a good opportunity, go for it and at the same time set a cut loss point because no matter how good or accurate your homework, there are still some chances Market may turn against you, hence you need a cut loss point to protect your capital. Come back another time, trade/invest in this way you will be a winner in long run.
You see I use capital letter for Mr Market. Yes it is a superior character, just treat it as God, what it tells you is always right.
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