Becoming the Best
How can I become the best I can be at investing? A structured plan would be good – I have a vague plan what I want to achieve but I need to take a step back and look at everything:
- Whats my time frame?
- Am I going to use technicals or fundamentals?
- Where am I going to get my data from / what tools am I going to use?
- When do I sell the stock?
- What is my maximum risk?
Time frame – I have decided my timeframe is going to be ten years as I feel that will be plenty long enough to make a decision whether my shares are going to appreciate further.
Technicals or Fundamentals – If you don’t know what this means allow me to give you a brief explanation. Technicals is a method in which you look at trends in the marked by looking at charts. Fundamentals is when you look at the financial status of a company: income statement, balance sheet and cash flow etc. I am therefore going to use fundamentals to base my decision however it is by no means that I am not going to pay attention to the charts of a stock.
Where will I get my data from – As of writing this post I am using Yahoo Financial and Hargreaves Lansdown. I will continue to try and find a better alternative as I grow as an investor. Leave a comment on what you think I should be using!
When do I sell the stock – I feel that a depreciating stock price (depending on the financial statements) is a good deal. As if they are giving strong dividends and have a good future you can buy more dividends for a cheaper price. Unless a company that I invest in is performing terribly I don’t plan on selling.
My maximum risk – At the moment I can’t financially support taking a huge risk so I will do my best to keep my risks fairly low.
I hope you have got something out of this… Let me know if you have and I look forward to reading your comments.