How to choose the Best Stock to Buy in Malaysian Stock Market!

Honestly speaking, it is difficult to stock pick the best share to buy in thebull market as most good counters/ stocks have raisen a great deal.While in the bear market nobody can guarantee that the current lowstock price has reached its bottom already.For the typical investor, says Mr. Joe Average, he who regularly chooses the best stocks based on hearsay, analysts%u2019 stock reports or economic forecast.He watches local & international business channels or listen towell-dressed people talking on TV who thinks they are veryknowledgeable. And finally, he believes them - else they would not beon TV, right???The average investors/traders pick a stock no one has really heard aboutand hope it would make them really, really rich! However the chosenstock could go in any direction. This is highly risky not knowingwhether the company can produce future earnings and profits. How tochoose the best stocks usually involves blue chips stock that arehousehold name companies or fairly well known companies in Malaysia orglobally. You can choose the best stock over the markets or the bestsector they are in.Subscriber can email me for stock-pick-the-best list.
For most average investors/traders I have interviewed, learning to stockpick the best share to buy or sell can be difficult because they eitherhave little or no plan at all as to why they are buying at the firstplace. The first question we need to ask ourselves is %u201Cwhy are webuying or do we have investing stock goals or trading strategies%u201D butunfortunately many traders and investors cannot even provide an answer.If you are a long term investor (I do not support buy, hold &pray), you would have a very different buying system criteria to ashort term trader who buy and sell within very short period of time. Soit is very important that you need to be very clear of your investinggoals and trading objectives. Make sure you can differentiate betweenyour long term investment goals and short term trading strategies. From my own experience having been in this online stock trading business foryears that the simpler the system for stocks picking the better, andthe good news is you do not need to rely on stock market experts orstock market gurus to tell you what to buy or sell. All you need issome effort, hard work and lots of practice with a few tools availablefor a very low cost. The process I use to pick the best stock to buy islargely a technical analysis which includes many elements offundamental analysis at the macro-economic level. The process is fullyexplained in my investing & trading course, but the principles are as follows.
We start to look at the Bursa Malaysia Saham stock market companies as apool. We begin to make selection on the individual stocks or the bestsector and at this stage the very simple and common indicators areused. Using a technical analysis tool, I would identify some possibleprospects for the best stock to buy and are placed on a watch list andmonitored daily. How long they remain in the watchlist folder depend onthe daily stock price chart.We wait for clues in changes in the technical analysis landscape totrigger our buy signal and buy order. After placing the buy order wealways put a stop loss in case the price trend reverses suddenly. Thestock market is so uncertain that we have to protect our capital.The only technical analysis tool that I use for the above analysis is asimple end of day charting package called MetaStock software which Ihave written technical codes (filtering the required best sector or byprice movements) to do just the stock picking.In short, the process to choose the best stocks to buy starts with themacro level and moves down to combination of using both technical andfundamental data. Although it sound very complicated, it is very easyto use as many of our course graduates have used them for years withgreat success. For new traders and investors, it is better to start offpaper-trading to allow you to overcome the steep learning curve e.g.various trading strategies, unpredictable stock market behaviour andcomfortable with placing order online for online trading.
To be successful, you have to model after successful investors and traderswho been through the blood and sweat who know how to pick the beststock to buy. Success lies on yourself and the effort you put in at thestart you. I hope the above article would help to put you into the rightpath.
-Martin Wong