When is low low and when is high high? that is the question.
Fundamentals dont work at NSE. Better to use as long term buffer for capital presevation.
A combinatsion of Fundamental and Technical can net in some decent gains (more quickly perhaps).
e.g. Company may be strong but if price is on downward trend - why buy? Checking the charts gives you a clue on when to get in.
A share can consolidate for years on end (price remains stagnant e.g. KQ for 10 years) in which case your capital is tied up with a non performer.
1000% profit in TEN years time may not be as sweet when you factor inflation & uncertainties. Better perhaps to have 200% average annual return that you can reinvest for compounded returns.
It's all subjective opinion but I no longer believe in long term buy & hold. Most of the time, that's a strategy reserved for suckers (think Madoff).
Lessons from Madoff: A statement is just numbers on paper. See the cash once in a while. Switch to different asset classes and avoid having your eggs in one basket.
I would call this my two cents - but its probably worth more than that.
:-)
Disclaimer: This is personal view and opinion. Not advice.
3 comments:
When is low low and when is high high? that is the question.
Fundamentals dont work at NSE. Better to use as long term buffer for capital presevation.
A combinatsion of Fundamental and Technical can net in some decent gains (more quickly perhaps).
e.g. Company may be strong but if price is on downward trend - why buy? Checking the charts gives you a clue on when to get in.
A share can consolidate for years on end (price remains stagnant e.g. KQ for 10 years) in which case your capital is tied up with a non performer.
1000% profit in TEN years time may not be as sweet when you factor inflation & uncertainties. Better perhaps to have 200% average annual return that you can reinvest for compounded returns.
It's all subjective opinion but I no longer believe in long term buy & hold. Most of the time, that's a strategy reserved for suckers (think Madoff).
Lessons from Madoff: A statement is just numbers on paper. See the cash once in a while. Switch to different asset classes and avoid having your eggs in one basket.
I would call this my two cents - but its probably worth more than that.
:-)
Disclaimer: This is personal view and opinion. Not advice.
Post a Comment