Cyclic Trading (Buy Low Sell High) vs Growth Investing (Buy Low & Hold)

Usually before a black swan could become a black bear for stock market, there are many market signals, eg:
1) High stock market optimism > 75% at global level (fulfilled)
2) Inverted bond yield for US (partial fulfilled)
3) Strong US job data < 4% unemployment rate (fulfilled)
… many more stock market and economic indicators

The global stock market is indeed feverish but it may get excited for a period of time first before falling down. Since global stock market at country level is a giant, it would recover one day as well, therefore a no-brainer way of investing could be simply invest in stocks of major economy (eg. US S&P500 ETF, Hong Kong HSI ETF, Singapore STI ETF, etc), buy low & hold long term.

A black swan is a market surprise, therefore not predictable. However, if we guess each month for 10-20 years based on everyday global financial news, one of them could turn into a black swan or global financial crisis eventually.

Therefore, a more practical way could be to allocate our funds based on market optimism. When optimism is higher, we could gradually take more profit, converting stocks into cash. At the same time, position more with shorter term trading with lower risk (assuming no leveraging), one could react faster when a true black swan is here.

We should view the economic cycle positively as it provides an opportunity for smart investors to buy low sell high with cyclic trading.

At the same time, there are defensive growth stocks which are not affected much by global financial crisis, suitable for buy low & hold with growth investing until the business growth is not sustainable, can be as long as lifetime as some businesses could transform and continue to grow.

In shorter term timeframe, traders could also apply swing trading (cyclic trading to buy low sell high within weeks or months) or momentum trading (buy & hold for a period of time until the momentum is over)

Ein55 graduates have learned various types of cyclic vs growth/momentum stocks for long term investing vs short term trading. Use the unique market condition to create various opportunities for us, aligning to own unique personalities.

For general public, you could learn the 5 pillars of Ein55 investing/trading: LO-FTP (Levels 1-4, Optimism, FA, TA, PA) through free 4hr stock investment course by Dr Tee. You will learn how to Buy Low Sell High, as well as Buy Low & Hold. Register Here: www.ein55.com

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)



10 Strategies of Buy Low Sell High in Stocks

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)

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  • 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)
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