How to pick winning stocks? Fundamental Analysis Part I

The one lesson I've learned is to live below my means and consistently invest my money in productive assets Stocks, businesses, real estate Nobody is out there to save me Jobs can be fickle, raises low I'm the one in charge to take care of myself & my family finances You can't rely on a job or the government to provide for you & have your best interests at heart You have to take action & make it happen Work hard to build skills to increase income Work hard to eliminate unnecessary expenses Work hard to invest that money Then enjoy life

Hi

Bad financial decisions often stem from a combination of psychological, emotional, and situational factors. Here are some common causes: P.sychological Factors: 1. Overconfidence: Believing too strongly in one's financial acumen can lead to risky investments or inadequate planning 2. Herd Behavior: Following others without due diligence can result in poor investment choices. 3. Loss Aversion: Fear of losses can lead to selling assets prematurely or holding onto losing investments too long. Emotional Factors: 1. Stress and Anxiety: Financial stress can impair judgment and lead to hasty or irrational decisions. 2. Impulsivity: Making snap decisions without thorough analysis often leads to regrettable financial outcomes. Situational Factors: 1. Lack of Knowledge: Inadequate understanding of f

I usual like to hold the stock for long term, eventually, the stock keep sinking till beyoung I could help by averaging and averaging , finally, run out patient to wait , just sell to cut pain.  Therefore , it's fearful on me.

Falling in love with a share, stayomg loyal in the face of both TA and FA evidence, and rationaliseaway  everything that doesn't sit with your confirmation bias.  Enjoy the capital loss.   9

1. Young & ignorant 2. Impulsive buying 3. Buy based on hearsay 4. Did not research/ probe further before buying 5. Follow the crowd / hype 6. Unwilling to cut early losses

Buy when price climb. Comp

*what causes me to make bad financial decisions?* I once ventured into the thrilling world of day trading, and what a rollercoaster ride it was! As the US stock market neared its closing bell (it was early morning in NZ), I was glued to my charts, leveraging my position on TQQQ with intensity. But just as I thought I had it all under control, my tiny traders-in-training (aka my kids) woke up, demanding breakfast with a chorus of "Mum I want this, mum I want that!" In that split second, TQQQ took a nosedive, and my heart sank. But thank goodness for that trusty stop-loss order, or else our family's meals would have been in jeopardy! Talk about a wake-up call - literally! It was a close call, but I learned my lesson: never underestimate the power of a hungry child (or a volatile market)!

Drugs, especially alcohol 

Stubbornness and a refusal to stick to the plan and pare losses. 

Yes, every bad decision has been the result of not knowing enough about the company before investing. But I've also come to the realisation that time often evens out the bad especially if you invest at the bottom of a cycle. What is my investment approach now though? If I like something new, I'll spend time researching it, if it looks better than something else in my portfolio or it adds depth to my portfolio then I'll invest a tiny amount, like 10 bucks or less. Over time you start to get a feel for the stock, soaking up all information on it, getting an understanding of when it's cheap and when it's expensive. My new friend on tiger trade @Barcode has serious convictions about an Aussie company

Long ago, I used to think naively that absolute    stock price Is the greateat determinant when      buying a stock. This is wrong. A $1 share can be expensive ( when it's intrinsic value is 0) whereas a $100 share is cheap when its worth is say,      $200. So now wiser, I'd buy the $100 share. Also, don't buy trashy stocks but buy only                  the highest quality stocks eg, CRM, google, unh,     Msft etc. Buy only when you have researched      them & do your due diligence.

Bad trade, beginning eager to trade and enter at high price. But now i learn my lesson. Patient is the key to succeas

When everyone partying 

either being too risk averse, or fomo

I have previously made a mistake on Apple, holding the stock since August last year. I noticed a bear trend that Apple earnings were going to be bad with Iphones and I decided to get out , dispute my conviction of staying In the market untill the new IPhone 16 would come out next year. It's taught me to stick with my convictions and earnings report and not the stock price . As I had pulled out at 169 stock price losing money instead of staying longer and now it's back to 190s.  Making bad decisions on other peoples opinions is going to show bad financial decisions. Stick with your convictions if you have done your homework. Block out the noise that wall street has for short term gains.

what cause me to make bad financial decisions? I guess only 2 main reasons : follow blindly and greedy! Most of the investors got into the trading at least once, listening to financial analysts or following others' opinions (friends or family) without doing research. When the stock is 🚀, you will regret selling for profit too early. Hence, you might chase high or even buy more. when the stock is plummeted, you keep holding it and telling yourself just paper loss ( which is what I am doing now [LOL] [Spurting]) Maybe is time to let it go [Thinking]