My Stocks Strategy

This is my first post in this blog. Today, I will be writing on the strategies which I hope to adhere to most, if not all my stocks actions, be it a buy, sell or hold. These are also limitations or rules i set for myself after experiencing through a few rounds in the stock market.

1) Percentage of Investment
No matter what amount of capital i have, I will utilize at most 40% in one stock. Eg, if my capital is $5k, i will only use $2k to buy any one stock.

2) Stop Loss Trigger
Before I buy any stock, I will determine the stop loss trigger price. By default, it will be 20% below the buy price.

3) Target Sell Price
Before I buy any stock, I will determine a target sell price. By default, it will be 30% above the buy price. This price can go up, depending on the performance of the stock.

4) Determination of Buy Price
A few points to consider before buying any stock.
A) Fundamental of company must be good,

• at least earning money, preferably with double digit increase in profits for last 3 years
• P/E not higher than 50
• Company product or services must be in demand

B) Technical Analysis of Company must be as follows:

• Price must cut MA20, MA 20 to preferably cut MA50 and best to have MA50 cut MA200.
• MACD must be positive and blue cut red line
• Shares should not be overbought

5) NO Contra on Speculation!

I will be slowly adding more rules to my investment strategy.