Have you started stocks Investing? if you haven’t, then this is the right time to read how a true investor Warren Buffett invests until he became one the richest man in the world by only working four times a year.
But if you have already started investing, We would like to ask you, are you sure you invest in the right way? how much profit do you get? or could it be that you always lose because of the stock market correction (down) has been happening lately?
What analysis have you implemented? technical? the indicator? astrology? analyzing the stars and moon alignment?
Probably you were like this at first …
In the beginning, you found out about the world of stock investment with terms such as Stock Trading, Stock Business, etc. Maybe you jumped into the stock market bandwagon because you were tempted by the profits of stock trading published by a group of people. They published the profits of stock trading, and offer information on stock recommendations that will go up today or this week with a subscription fee of a certain amount every month.
Then you were tempted and followed their steps, by receiving information on stock recommendations, then you buy your shares outright without knowing the ins and outs of the company.
Did you get the profits? and were all the recommendations correct?
Some recommendations might be right, but how many times DO they get them wrong? You probably did make profits, but how much was your loss? how many shares are floating loss? (negative stock but not yet sold).
You must be wondering, right? the photos published always show profits, but how come after I subscribed, I lose the trade instead of making profits? Well, that is how salespeople do their job, the wouldn’t show the faults in their services. They provide uptrend stock information to you but also they will never publish their losses.
Surely 100% they use technical analysis, calculating graphs, astrology, mathematical formulas, physics, chemistry, biology, superstitious, what else??
Are all the results valid, always right? not really, right? be honest.
The funniest thing is when you invest this way is that when the value of a stock goes down for a long time, you hold it instead of cutting losses.
But when you make profits you quickly sell, feel familiar? how can you multiply your profits?
Actually, Warren Buffett strongly disagrees with the technical analysis of shares, not only him, but all big players also disagree with this method.
We remembered one of Warren Buffett’s words,
“Stock Investments should be Simple and Easy”WARREN BUFFETT QUOTES
Investing in a simple way made him one of the richest people in the world, now, you who use a variety of complicated techniques continue losing money.
Actually, the goal of MSI is to motivate you not to be discouraged in investing in shares, not to blame you.
Let’s get back together on the right investment path, maybe for those of you who keep gaining profits continue to invest in shares, disregarding this article, but for those of you who are always lost and feel hopeless, it would be good to read this article to the end.
Remember, what you buy is shares, which means ownership of a company, actually, you are buying a business from that company.
So that you have to understand it perfectly, the company BUSINESS which shares you buy, not just sheets that have fluctuating prices.
You Must Realize This
Fundamental Analysis is the key to success in stocks investing, with this analysis we can assess how well the company’s business is.
Warren Buffett always uses this technique, not only him, successful investors like Lo Kheng Hong, nicknamed Indonesian Warren Buffett, also applies this fundamental analysis technique in assessing the stocks market.
Then, what are the results? they made profits a thousand times of the initial capital, they become a tycoon, true successful stock investors.
Have you ever heard of someone who relied on technical analysis who has had great success in stock investing?
All successful stock investment people come from fundamental analysis techniques, there is no history of successful technical investment stocks like the fundamental ones.
What did Warren Buffett do before investing?
For sure he collected a lot of financial statements from many companies to be analyzed, with financial reports, we can analyze companies fundamentally.
Fortunately, We have a guide on how to analyze stock fundamentals in the following link How to Analyze Fundamental Stocks.
So how ? still want to carelessly buy shares according to the recommendations of technical experts? or want to be able to analyze stocks based on their fundamentals?