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Wednesday, May 16, 2012

Buy Stocks At Lowest Price

When I bought one share of Visa (ticker:V) at $199, I thought the price would increase gradually. However, its price seems fluctuation instead these days due to economic issues. Today, it was $116. I incur 1.4% loss. Never mind, It's my long investment.

Analyse stock first
I was supposed to analyze the stock before I decided to buy it to avoid big losses. Basically, macro economy and market condition do matter. So, when is the right time? Read world's economy calendar! For example, this month, US had published their job statistics, it showed many unemployments and less available jobs. It affected stock prices of course. Market would respond the news negatively, as a result, the stock price would be lower and catch the fish!

In another hand, stock price is also influenced by companies business progress. When company publish their income statement for example at Q1, and it shows the company gain higher profit, it will increase their stock market. Just remember demand theory! However, if the company doesn't gain higher profit, keep monitoring their stock price because its price will go lower. Once more, catch the fish!

Actually, it's that simple and easy but you must know you have to implementing money management to avoidd losses. As conclusion, never put your eggs at one basket. Invest smartly and happy investing!