Stock Trading & Me

I have always been interested in stock trading. It allows one to participate in business without actually need to start one. I didn’t have a formal education on this area but to me, it is as simple as finding a balance between market confidence towards the company, companies profitability, gauging markets response towards news and understanding patterns of speculation. I managed to win a Stock Trading competition straight out of college without any prior experience on the matter. Following are some of my thoughts.

  1. Bottom reversal – When a stock is crashing, there’s always a reversal. I have managed to profit 40% from a crashing stock, from 1.00 to 0.10.
  2. Company’s buy back – When an established company’s stock plummeted to near IPO, given the good companies track record, it could mean it’s just a shift in asset by investors. The company will buy back its stocks to boost confidence. The same with newly established companies. Newly listed companies might not have a good track record but they will strike a deal with investors to stabilize their stocks.
  3. Loss of momentum after spikes – Usually after a sharp spike from news, the stock will lose its momentum momentarily.
  4. It’s about the steepest ascend – There are a lot of blue chips out there like Intel, Nike, FANG, and so on. What we want is to double our investment within a year. Not a decade. Choose wisely.
  5. What are the safe options for decent ascend? A plunge on blue chips. Just have a look at FANG. If there’s a 10% drop on FANG, its ok to enter. Best if 20% and above.


to be continued…

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