Making money from stock market is easy. But I always want to make more in terms of percentage %. Just like bowling, for me to hit the pins is easy, but I always want to have strike or more pins to fall.
I only have one bowling style, aim at the middle. But sometimes the ball roll a bit on the right side. So I will twist a bit left, but many times too much towards the left.
In stock market is the same, I always try new things.
This one and a half years have been tough. Reason is because brokers research reports did not much good stocks. Even the stocks has low or negative growth, they also continue to write. Most of then are with high PE ratio.
Less good stocks did not seem to bother me much because last year and begining of this year I need cash for other investment and didnt really invest heavily. But when I got the cash, I couldn't find much good stocks.
Minor Change In My Strategy:
DO NOT RELY ON ANALYSTS.
Rather than waiting for their good recommendation, I will go forum, blogs, newspapers, magazines, company annoucement etc.
More time consuming, but no choice.
Initially I try to read as many as possible but too time consuming. So now I just pick-up some, miss some never mind. Again, no choice. Will never find the best and will never find all.
Do Not Like The Stock Too Much.
Analysts reports are easy, few minutes I can make a decision. But from blogs or news are not so easy. The info are not complete and I havd to do my own computation. Have to research more. As I study and study, not to my realisation, I have liked the stock too much. Keep picking up the good points and ignoring the bad. Lesson learned.
Qualitative and not quantitative.
As you know, I am just an ordinary investor, not good in analysis. Somtimes I thought the profit was good and bought it, not realising many things example forex, QoQ (this one simple but sometimes forgot), exceptional items, etc.
I will not rush into buying based on the result, but rather just focusing on the future growth that nobody know the exact answer.
PE RATIO
Previously I missed out a few stocks because the PE ratio was high, but the profit keep growing. That's why recently I also bought some stocks with high PE ratio. Some turned out to be good, some no. Profit up but price same because PE ratio already high.
What I will do? Stop buying high PE ratio stocks. Stick to my low PE ratio. If high PE ratio, I will use latest earnings EPS X 4, and see whether can get low PE ratio or not, provided the result is not seasonal.
Summary
To sum up, I will read more and not just wait on analysts. Shall ignore high PE ratio unless really good and don't like the stock too much. Stop study into too deep as this is not my strenght.
No matter how I change my style, as long as I keep buying good prospect stock, good profit will come.
Happy Investing.
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http://politemarket.blogspot.my/2016/08/why-my-stock-market-skill-is-like.html
