10 Jan 2016
Dear Fellow Investor,
Our theme for 2016 is to realize that good companies can do well in a bad economy and we need to spend time looking for them.
It requires understanding and knowing trends of money flow. Another word – where are smart money investors allocating capital?
Do a scan every week of the KLSE sector indexes. Look for sectors breaking out from consolidation from a stage one. Look for volume coming in.
Volume is the fuel of the market. Volume means participation. It is like gasoline in a car. Without gas, your car will not move.
Once you narrow in on a sector, look for individual stocks in that sector that are having 18 day line changes on volume. Your IVSA platform will identify immediately these shares. Detail a trading plan with risk defined and hold until money flow dries up or your risk is hit.
In this way you do not need to worry about the oil price, interest rates, politics, price of gold etc.
To do this you need to tune out the media reports, broker recommendations and crowd fears. Just trade the price.
This objective method will put the odds in your favor and save you a lot of time.
If the shares you find are strong fundamentally and pay good dividends that makes it even better.
This is like treasure hunting with a gold metal detector.
Invest well and grow your wealth , Bill
PS: my new blog is www.asianequity.blogspot.my . I will post the newsletter on the blog plus articles on animals/ nature/travels and hobbies which may interest you. This week I will post a photo of
Jonathin a 185 year old tortoise.
No comments:
Post a Comment