AIO Finance Analysis

1 Ms Mirriam MacWilliams does not subscribe to the belief of investing in stocks with falling prices or buying them at their rock-bottom prices. It is the worst time to buy because you have no idea why the prices are falling, she said. Only fund managers are able to do that because of the sheer number of stocks they control.

2 Never rush in to buy the stocks. “I prefer the stocks to give me a
direction; once I have a direction, I apply entry and exit parameters,” she advised. “Always have a trading plan.”

3 Take note of the time horizon or percentage move on the stock. For example, if you are in a three-week trade window period, you may want to aim for a 10-per-cent move on the stock. If the window period is around three or four days, you would expect the stock to move
about 5 per cent.
4 She has this advice for short-term investors: “You just need to
understand certain criteria in the US stock market such as the price movement of the stock and the number of the stocks. “As long as you understand the criteria for investing, you don’t have to get so worried
about economic fluctuations.” Long-term investors looking at a window period of one to two years should “keep their eyes on the pulse of the
interest rates in the US”.

5 Be a consistent trader. Do something over and over again that yields you good return and eliminate all the pitfalls for that risk.

6 All-time high prices are risky. Do not get too emotional when prices escalate or decline.

7 Know that fund managers will go in the opposite direction of the masses. When the market is bullish and everyone is getting in, they are getting out, and vice versa.

Source: MyPaper