May 10, 2021

The Right Time To Buy Stocks

Owning stock options is one thing that is very important. Do it continuously along with the research we do. Enjoy this process. Add to the list if you find a good company, and remove it from the list if the company that we previously thought was good is no longer good. You might be able to find information about profitable companies from various sources but to find out more accurate information, you should consult a stock advisor because it will be more credible and accurate.

Equally important is BUY for the chosen stock. Economic law “Buy at the lowest possible price to get the maximum value” applies at any time, especially in investment. Always embed into our habits (so that it becomes a character), before buying ask yourself “whether the value I get is greater than the price I pay?”

Only buy shares when providing a margin of safety that is quite profitable from the price we will pay, it is the price of the shares that must be executed. Value is the estimated fair value of the stock, also known as intrinsic value. And to find out how intrinsic value is, valuation is needed. The intrinsic value must be greater than the stock price, the greater the better to provide sufficient Margin of Safety (MOS).

You can make your own rules such as only buying shares with MOS greater than 40%. Because it is an estimate, it can be right or wrong, you must protect the inaccuracy of the estimation with a large MOS pad. So, for stocks on the watch list, calculate all of its intrinsic value. Monitor the price of the shares, and enter (buy) the shares when getting a MOS greater than 40%.
To monitor the stock price on the watch list, it does not need to be done too often. Just relax. Maybe once a week, maybe a few days. The important thing is to just relax, anyway just need to open the application and see the watch list briefly.