From the chart observation, STI will be testing the 20 days moving average and we may see a downside, if it breaks the support at $2929.72
At the same time, it has also flashed a MACD bearish crossover signal at the oversold region.
There are so many ways to pick stocks, the commonly known one will be growth investing, dividend investing, value investing, and technical analysis. In fact, they all works and able to make money in the market. Typically, whatever strategy the person picks have to suits their character and temperament.
For example, if the person is impatient and not able to wait to see his gain, he will not be suitable for value investing. Usually, for passive value investing, the waiting period is between 3 to 5 years. Unless, it’s active value investing, discover the catalyst, trigger it to realise the intrinsic value early. Technical analysis will be more suitable for investors who are looking for quick gain.
Growth strategy is focus on companies with strong growth potential with increasing revenue over the years and it will only be suitable for investors who are trying to seek capital appreciation.
As for, Dividend strategy is to focus on companies that pay good steady dividends. Investors will be more appropriate to invest in blue chip companies seeking for income and modest capital appreciation.
Value strategy is to focus on companies that display low valuations parameters and out of favour in the market. Investors will target the capital upside.
Initially, when I started investing, I am a value investor & from value strategy I did a switch over to dividend strategy. In fact, value investing works for me & over the years, I’m making good money out of it.
However, I did realise that there are some flaws in value investing. Until, I find out and understand how those real life multi-millionaires investors invest for their portfolio that actually trigger me to make the switch. In a nutshell, using the Dividend strategy actually allows me repeatedly to compound my money years after years. Yet, this investing strategy is so simple that anyone is able to follow & increase their wealth over the years.
Throughout the years of my investment journey, I have come across a lot of people buying stocks without knowing what the company does. And majority bought it base on recommendation by friends, broker, research reports, etc.
Sometimes, they make money but over the long period of time, they lose more than they win.
Therefore, whatever stocks I pick, I will make sure I will check the company background especially the business they are operating and their financial history. Beside, considering myself an investor cum one of the shareholders for the company, I will be there for a long period unless, there’s a change in the business fundamental.
In a nutshell, I will only invest in companies with good criteria & it also applies in picking a girl to be my wife. Which, I consider it as a long time commitment & hope to minimize as much risks as possible. Dun get marry for the sake of marriage even you have reach the marriage age or sudden thought to get marry, make sure you understand her as much as possible.
Sincerely, I hope any person, who is going to put money in the stock market will try to understand what the company is doing including their past financial history & value their stocks in terms of Price multiple, Discount cash flow or Dividend discount model. All these things can either be self-learn or take up some courses in investing.