Let me give you an example. I study the price movement of MAYBANK since market panic selling in March 2009 until 1st July 2011. Based on the chart above, its share price has moved from the low of $2.77/share in 16th March 2009 to $8.95/share in 1st March 2011. This represents an impressive annual compouding return of 67%. Yes, the great 67% p.a.. Of course, as indicated in my book, I will wait more positive signal to buy. As a result, assume I decide to buy MAYBANK on 15th April 2009 at $3.27/share. By 1st July 2011, my unrealized profit is still a mega 58% p.a..
Continue with this example. Since MAYBANK stock price has been moving upward since then, the return of any subsequent entry is sure much more inferior than the early recovery stage and, of course, the risk of holding (losing) is higher now than ever.
Once again, I AM NOT suggesting now is not the time for stock investment but is not the time for accumulating. The yield of any high price stock will be very slim and the risk of stock price contraction is just too huge when general market is high.
Good luck.
Best Stock Investment Timing
Reviewed by Pisstol Aer
Published :
Rating : 4.5
Published :
Rating : 4.5