@Southie how do you pick a stock? I mean can we do it without going insane in numbers? I know a lot of people tell to check P/E ratio, but is that it? I know some people who go very deep while analysing a stock but jeez i cant do it yet. Looks like need to learn a whole lot to be there
Sid, it probably is best to stick with index funds such as total market index fund for US, and similar index funds for europe. Or pick one international fund for non us, and one us total market index fund. And dollar cost average.
Individual srocks are fraught with risks. I simply look at whi h sectors are undervalued and buynstocks within them. Back in 2014 or 2015 bought oil stocks and sold them six months ago at decent profit. Why did i sell? Because i felt in long run, we are weanimg ourselves drom oil. But since then oil stocks have gone up some more. But no regrets. I had a thesis which may very well turn out to be right in the ling run.
i ahve accumulated pharma stocks iver last several,years. Buy tehem wheneve there is bad news sich as patent expirtion amd then hold on for ling term.
I dont chase aaple google facebook tesla etc. they are too overvalued. I have been “wrong” since theynhave hone up a lot and made others a lot of money.
To pick stocks i look at balamce sheet income statement and cash flow. PE ratio is from income statement. I also look at price to sales.
But if a company balance sheet is weak, i ont touch it no matter the PE ratio.
I dont know much about index funds. Which one do you recommend?
Few months back i was looking into day trading. Its interesting but once again it needs a thorough understanding of stocks. Do you recommend day trading? Ok may be not a single day but say week trading where a stock can be sold in 1-2 days? Not sure if there is a technical term for any such thing
I’ve made some mistakes and got some overvalued stocks myself and now they are down and im just sitting on them. Dont want to sell them at a loss as it doesnt make sense to me.
Everybody wants to be a daytrader these days lol. thanks to crypto run I guess
I’m not as savy as @Southie but day trading is for short run but if you want to make money in dividends, then long term investment is necessary.
there are youtube videos available for daytrading