Stock Selecting Skills

Stock Selecting Skills

The application of average capital method to buy POS Malaysia Bhd 4634 by buying more while it drops, can cause you lose more in the long run.

Wrong investing concept: I ‘perceived’ the stocks’ prices are already low, however after buying it; it drops even lower! Perception in investment is dangerous and disastrous.

Selecting the right stocks will make your investment profitable. Conversely; if you randomly select the wrong stocks, you will encounter heavy losses. Regarding POS Malaysia Bhd stock, if you have bought it, then there is a necessary to know when to sell it for profit.

If you unwilling to stop loss when the share depreciates, it may cause you even further losses. It may be just a paper loss, but it is still a loss.

From the chart below, it shows that the share price of Malaysia stock POS Malaysia Bhd 4634 has been dropping since the beginning of April’15 until now – from RM5.116 to RM2.16. A drop of nearly 58% within nine months.

Malaysia stock POS Malaysia Bhd 4634

If you have INSIDERS investment software to assist you earlier when OLA show a downtrend on POS Malaysia, will you still buy it?

Refer to the following chart: Malaysia stock POS Malaysia Bhd 4634

Malaysia stock POS Malaysia Bhd 4634

POS fell from RM5.116 to RM2.16 – a different of about RM2.956. If you had bought 50 lots (5,000 units), you would have loss RM14,780.

Continuing a loss is not a good choice. Why not use a cost effective investment tools to help you ?

Enthusiastic to learn stock selecting skills? Contact us: (+6) 012-475 7723 / 012-401 7723

This entry was posted in Malaysia Stocks and tagged , , , , , , , , , , , , . Bookmark the permalink.