How to Invest during Earnings Season?
For the past 1 week we have been seeing fantastic financials from technology giants in NASDAQ particularly FAANG $Apple(AAPL.US$ $Amazon(AMZN.US$ $Netflix(NFLX.US$ $Facebook Inc(FB.US$ $Alphabet-C(GOOG.US$ . Besides that, $Advanced Micro Devices(AMD.US$ which is my personal favourite is also doing well. Mainly because the Ryzen processors have been conquering the market with its affordable pricing and exceptional performances.
It is no doubt that at least for coming 1-2 years it will be a bullish trend for technology stocks, and technology is our future. Meanwhile, the stock price for technology counters have been soaring historical high, with this situation, how can we plan and execute our investment strategies?
Being a long term investor, I dont do short term trade or swing trading as I look for capital gains. There is a golden rule from a famous investor in Malaysia, Mr Fong Siling. He said if the company is growing, DO NOT SELL and HOLD LONG TERM.
It is no doubt that at least for coming 1-2 years it will be a bullish trend for technology stocks, and technology is our future. Meanwhile, the stock price for technology counters have been soaring historical high, with this situation, how can we plan and execute our investment strategies?
Being a long term investor, I dont do short term trade or swing trading as I look for capital gains. There is a golden rule from a famous investor in Malaysia, Mr Fong Siling. He said if the company is growing, DO NOT SELL and HOLD LONG TERM.
Then when should you sell?
In my opinion :
1) when the company stops growing
2) when you need cash
3) when the company is facing issues with its business
4) when you feel the company is overvalue and hope to buy when the price retrace, this is however easier said than done
We take $Apple(AAPL.US$ as example, for the past 1 month the stock price has been going up, then coming down when it was close to financial announcement date. It went up before financial because investors are expecting good earnings from the company hence they bought it early. It dropped after probably due to massive profit taking from investors who have bought it previously.
In my opinion :
1) when the company stops growing
2) when you need cash
3) when the company is facing issues with its business
4) when you feel the company is overvalue and hope to buy when the price retrace, this is however easier said than done
We take $Apple(AAPL.US$ as example, for the past 1 month the stock price has been going up, then coming down when it was close to financial announcement date. It went up before financial because investors are expecting good earnings from the company hence they bought it early. It dropped after probably due to massive profit taking from investors who have bought it previously.
Hence, earnings season is the worst time for you to buy stocks, because you might end up buying at the highest price, and face uncertainty with stock price movements.
The best timing to buy will be the period when the stock price fluctuates and getting stable sideway, particularly between 2 financial seasons.
See the similar trend? It went up before financials end of April then went down. May/June was the best timing to accumulate $Apple(AAPL.US$ share, provided there is no major policy changes in White House ![]()
However, there is another easier way, if you believe in the company, you can just buy, uninstall app, and wait.
However, there is another easier way, if you believe in the company, you can just buy, uninstall app, and wait.
As long as the company is good and growing, you have nothing to worry, eventually it will go up, you just need some patience.
How to decide which company is good? How to choose which stocks to buy?
How to analyse a company?
All these questions you will have to find our your own. Different people has their own preference.
Of course, if you buy at the lower price, you will feel comfortable and less pressure when the stocks dip.
I hope my article helps a bit for long term investors.
Thank you @moomoo Event for organizing this event again!![]()
How to decide which company is good? How to choose which stocks to buy?
How to analyse a company?
All these questions you will have to find our your own. Different people has their own preference.
Of course, if you buy at the lower price, you will feel comfortable and less pressure when the stocks dip.
I hope my article helps a bit for long term investors.
Thank you @moomoo Event for organizing this event again!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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wallpapers : $Luokung Technology (LKCO.US)$
sherry0707 : cool