10 Strategies of Buy Low Sell High in Stocks

Posted on February 22, 2017 Written by

Ein55 Newsletter No 051 - image - buy low sell high

There are many strategies of entry & exit for stocks, all are possible to make money but must be aligned with our unique personalities. Here are some methods which Ein55 Graduates have mastered:

 

(Swing Trading / Market Cycle Investing)

1) Buy Low Sell High (short term: weeks)

2) Buy Low Sell High (medium term: months)

3) Buy Low Sell High (long term: years)

(Position Trading / Growth Investing)

4) Buy Fair Price & Hold to Sell Higher (short term)

5) Buy Fair Price & Hold to Sell Higher (medium term)

6) Buy Fair Price & Hold to Sell Higher (long term)

7) Buy Fair Price & Hold permanently

(Momentum Trading)

8) Buy High Sell Higher (short term)

(Shorting)

9) Short High Recover Low (short term to mid term)

(Value Investing / Dividend Investing)

10) Buy Low & Hold (short term, mid term, long term, permanently)

 

There are many other different combinations of strategies which Ein55 Graduates have learned (eg. integrating stocks with forex, properties, commodity, bonds, macroeconomy, Level 1-4). At the end, you just need to master 1 strategy, you could make money in stocks.

There are many trading / investing schools which will focus in 1 or 2 strategies above. We need to know ourselves first before knowing the right choice of investment and strategies to apply.

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I like this new term: “wrong term investment”, mismatch of personality and strategies. There are many people who fail simply because wrong choice of term, eg:

– a long term investor who learns short term forex trading

– a short term trader who learns undervalued property stocks

The saddest thing is to enter as a short term trader, when wrong, does not know how to cut loss, ending up as a long term investor, holding on to junk stock for life or until the company goes bankrupt. We should choose to be a long term investor, not being forced by the market to be a long term investor.

There are also a few more unique styles applied by some Ein55 Graduates:

1) long term trader = buy & sell like a trader every few years

2) short term investor = buy fundamental stocks for short term

3) long term CFD investor = buy CFD for long term dividend investing

In fact, investing and trading can be fun, we are investment coaches, designing the right and unique strategy for ourselves.

 

The safest time to buy a stock is when everyone is afraid the sky will fall while the business is still operating normally with consistent performance. This could be a rare opportunity to buy during a crisis; we should learn how to take this advantage to truly buy low sell high.

When Optimism Strategies are combined with Fundamental Analysis (value investing & growth investing), Technical Analysis (support / resistance / trends), and Personal Analysis (mind control of greed and fear), it is very powerful as one can take the right action (Buy, Hold, Sell, Wait or Short) at the right time aligning with his own personality.

The unique Optimism Strategy developed by Dr Tee provides a special advantage to know which investment (stock, forex, property, commodity, bond, etc.) to buy safely, when to buy, when to sell, including the option of long term holding.  So far over 20,000 attendees have benefited from Dr Tee high-quality free courses to the public. Take action now to invest in your financial knowledge, starting your journey towards financial freedom.

Dr Tee Courses

Learn 10 Strategies of Stock Trading & Value Investing (股市投资策略)

1)    Master Buy Low Sell High for all investment markets (stock, property, commodity, forex, bond) (买低卖高：股票、房地产、商品、外汇、债券)

2)    Profit in bearish and bullish markets, understanding the true impact of US Interest Rate Hike, Bullish Global Economy, Oil & Gas Crisis (环球经济)

3)    Long-term investing strategies to outperform portfolio return of Temasek, Li Ka-Shing, Warren Buffett, major stock indices/ETF and other funds (长期投资策略)

4)    High-probability Shorting techniques for short term traders to profit from falling stock market while others are losing money or doing nothing (短期卖空技巧)

5)    Generate consistent Passive Income with REITS and real property with knowhow of high dividend stock and property market cycles (房地产信托股的被动收入)

6)    Methods of Spring Cleaning for own stock portfolio to eliminate junk stocks without any hope (股票大扫除)

7)    Time for Global Financial Crisis to buy blue chip stocks on sale (危机也是良机)

8)    What to buy (stock screening), When to buy/sell (buy low sell how), How much to buy/sell (risk management): (股票三部曲：买何股？何时买卖？买卖多少？)

9)    Fundamental   Analysis (FA) + Technical Analysis (TA) + Personal Analysis (PA), integrated with unique Optimism Strategy by Dr Tee (乐观指数：三法一体)

10) Global Stock Market Outlook: emerging opportunities with high potential in Singapore, US, China & Hong Kong stock markets (环球股票市场展望： 新美中港，股票良机)

3 BONUSES for Dr Tee Workshop Attendees:

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Bonus #1 for Readers:  Dr Tee Investment Forum with over 6000 members (Private Group)

(Please click “JOIN” with link above and wait for Admin approval of membership)

  • Market Outlook (stocks, properties, bonds, forex, commodities, macroeconomy, etc)
    市场展望 (股票、房地产、债券、外汇、商品、宏观经济等)
  • Optimism/ Fundamental / Technical / Personal Analyses
    （乐观指数 / 基本分析 / 技术分析 / 个人分析）
  • Investment risks & opportunities （投资风险及机遇）
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Filed Under: Stock Market, Technical Analysis Tagged:

Dr Tee: Successful Stock Trading & Investing with FTP Analysis in Optimism Strategies

Posted on August 17, 2016 Written by

Ein55 Newsletter No 037 - image - Taiji

First things first, what kind of investor would you describe yourself as? Conventionally, we classify investors into two groups—long-term and short-term.

Long-term investors also tend to identify as value investors, who typically base their decisions on Fundamental Analysis (FA). In other words, they are not so into day-to-day trading, or watching stock charts closely as stock prices go up and down. Instead, they prefer to read company reports and seek stocks which they believe are trading for less than their intrinsic values.

Short-term investors…well, it is still debatable whether short-term trading can be called investing, but we know that it’s a much faster game with less waiting time, but more technicalities or Technical Analysis (TA) involved.

So, quick, choose one between the two, which type are you? It’s hard to stick completely to one choice, isn’t it?

Each side has its limitations!

I too would find it hard to just pick one and leave the other one out entirely, because I don’t believe that the two investing styles should be mutually exclusive.

In fact, each style comes with its own set of blind spots and shortcomings.

For instance, one could still lose money by buying a fundamentally-strong stock at a sky-high price.

In the case of short-term trading, it might easily turn into over trading, i.e. excessive buying and selling to increase the probability of successful trades. Such gambling behaviour, coupled with a lack of discipline, could cost investors heavy losses.

Therefore, I think it is advisable and even important to make use of both FA and TA, to enjoy the “best of both worlds”, and in other words, buying giant stocks at cheap prices and at the right time.

On top of that, the investor would also need to develop a kind of inner discipline. Thus, I would like to add another school of thought—personal analysis (PA) as well.

I have integrated 3 schools of thought: FA+TA+PA (FTP analysis) through the unique Optimism Strategies.

 

Ein55 Newsletter No 037 - image - FTP

More about FTP Analysis

People who are new to investment may ask the question, “So what is FA, TA, or PA? What can I expect to learn under each category?”

This is how I look at it.

When it comes to Fundamental Analysis (FA), it is more than just assessing a company’s business performance or intrinsic value (though that will be covered as well). We should also have an understanding of the macro economy (e.g. how countries/ economies are doing on the whole) as well as microeconomics concepts (e.g. demand and supply). I believe that the stock market and the economy are related like how the teeth are related to the lips—without the lips, the teeth will feel chilly.

As for Technical Analysis (TA), ideally we want to buy low and sell high, but it is not that straightforward. In order to enter and exit markets at the right timings, we need to look into trade volumes, values, patterns, trends, etc. I will also be sharing key points that include: relative and absolute technical analysis, as well as bull and bear market interpretation.

Personal Analysis (PA) is essentially a study of 4P: Investor Psychology, Political Economy, Winning Probability and Personal Indicators. It might be the most overlooked part, though I feel that it can even be more important than FA and TA sometimes. Market forces may be uncontrollable and unpredictable, but we can overcome our own emotions and also form personalized investing strategies.

How do we connect these three schools of thought together then? Having been an investor for 20 years myself, I think it can be summed up in one sentence: Identify strong FA stocks, and buy/sell at a time aligned with TA indicators, as confirmed by PA.

The unique Optimism Strategy developed by Dr Tee provides a special advantage to know which investment (stock, forex, property, commodity, bond, etc) to buy safely, when to buy, when to sell, including option of long term holding.  So far over 10,000 audience have benefited from Dr Tee high quality free courses to the public.  Take action now to invest in your financial knowledge, starting your journey towards financial freedom.

Drop by Dr Tee free 4hr investment course to learn how to position in global giant stocks with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Learn further from Dr Tee valuable 7hr Online Course, both English (How to Discover Giant Stocks) and Chinese (价值投资法: 探测强巨股) options, specially for learners who prefer to master stock investment strategies of over 100 global giant stocks at the comfort of home.

You are invited to join Dr Tee private investment forum (educational platform, no commercial is allowed) to learn more investment knowledge, interacting with over 9000 members.

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)
Filed Under: Fundamental Analysis, Market Optimism, Personal Analysis, Technical Analysis Tagged: , ,

How to Capture Falling Knife Safely for Stocks in Crisis?

Posted on August 3, 2016 Written by

Ein55 Newsletter No 035 - image - Falling Knife image

Every crisis is an opportunity.  We have learned to be greedy when others are fearful.  However, not everyone is mentally prepared to buy low and sell high following one’s personality.  When a business is in crisis, the stock price is like a falling knife, one could get hurt when enters too early, buy low and may get lower, emotionally affected with the endless falling prices.

For example, over the last 2 years of crude oil crisis, stock prices of global oil & gas stocks are significantly corrected. Singapore oil & gas stock index is at 9% optimism (see chart below), a very attractive price level over the last 10 years, upside is much higher than downside from a long term perspective.  However, whenever there is a technical rebound due to good news (eg. recovery of crude oil price), there could be another negative news who correct it down further (eg. Swiber plans to wind up the business recently).

Ein55 Newsletter No 035 - image - Falling Knife

 

Here are a few important considerations for us to safely capture the falling knife of a stock in crisis:

1) Fundamental Analysis

Some weaker stocks may not survive through the crisis. It is critical to always consider giant stocks with strong fundamentals.  Based on the survival of the fittest, after the winter is over, these strong stocks will grow stronger, especially there are less competitors with higher demand then.  For more conservative investors, one could wait patiently for signs of reversal in the business performance.

 

2) Technical Analysis

While long term view of a stock could be at attractive low price, the intermediate price trend usually is bearish for a stock or sector in crisis, eg. commodity, shipping, casino, etc.  It is important to follow the trend before entry, waiting for the falling knife to drop the floor first, before pick it up safely.  Confirmation of uptrend is required, aligning Level 1 (individual stock), Level 2 (sector / industry), Level 3 (country / region) and Level 4 (whole world).

 

3) Personal Analysis

One should know own’s personality before deciding whether short term trading or long term investing is a more suitable approach.  It is hard to force a trader to buy low and wait for several years to have tremendous capital gains.  At the same time, a true investor could grab an opportunity even with counter trend in prices, ignoring the daily market news, using strong holding power to reverse the trend eventually, buy low sell high.

 

Filed Under: Commodity Market, Fundamental Analysis, Market Cycle Investing, Personal Analysis, Technical Analysis Tagged: ,

Enter or Exit Stock Market with S&P500 at Historical High Now?

Posted on July 17, 2016 Written by

Ein55 Newsletter No 034 - image - S&P500

After breaking the triple top resistance of 2100, short term S&P500 becomes very bullish, setting new record high each day. Current US stock market is only suitable for short term trader to apply breakout strategy, buy high sell higher with trailing stop.

When S&P500 enters danger zone of >75% Optimism again, any future crisis could potentially become the next global financial crisis. Since global stock traders have not reached the euphoric stage yet, US stock market could remain bullish, sustainable if there are intermediate cooling measures, eg. news of US interest rate hike or another regional crisis, while the US economy is still growing.

Short term bullishness of S&P500 (another historical high at 2163), winning of Japan Prime Minister Abe (more QE is expected), lower fear factor (VIX is at low), have helped the global stock market to recover and achieve short term high. The trend is ideal for short to mid-term trading. Even Malaysia has lowered down the interest rate, this could be a gradual growing bull market.

For long term investors, it is important to learn to take profit at the right time, so that there is enough cash, which is king, to buy blue chip stocks at low price during the next global financial crisis.  For value investors, it is possible to hold the stocks without selling with condition that these are truly giant stocks, which the business can still be profitable even during economy recession.

 

 

Filed Under: Market Outlook, Stock Market, Technical Analysis Tagged: ,
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