6 General Strategy for Stock Investment

Nowadays stock investment has become one of the way people look for passive income. In stock market, retailer can trade 1000 plus of company stock. However, which stock to buy is always the question everyone asking. Some retailer will buy stock base on technical analysis provided by banker, fund manager and even trader itself. Then some will base on rumors spread by friends or forums. However, the result is not always what they expected.

Eventually, I believe technical analysis is the best tools to help us to pick which stock to buy. However, I know some of you are not so good in technical analysis so you might want to know what the other strategies to invest in stock are. Here are some general strategies I will use for stock investment. 

1. Value the company 

Always value the stock base on the company growth, profit and cash holding. The company must have future growth and have to be always active in expending their business. The company needs to have good track of profit. Their cash holding also have to be strong. 

2. Pricing Power 

Try to invest in company which has pricing power. This kind of company can increase their product price and yet it won't reduce their sales. The company which has pricing power normally can withstand the market crisis. This is also one of criteria when Warren Buffett invests into the company. 

3. Invest Dividend Stock 

Invest in high dividend stock. Why dividend stock? It's simple because high dividend stock can provided you a good passive income. With passive income you can reinvest back into stock. 

4. Focus 

Focus on buying the stock. Don't too diversify your portfolio. When found a value stock to invest, focus on investing to the stock. Do not panic when the market is down. 

5. Monitor stock once a week 

Everyday monitor your stock will make you emotional and then make mistake. Try to monitor your stock once a week so you can also enjoy your life besides investing stock. 

6. Buy when down 

When market is down, do not panic... try to review which stock you can invest Try to find which entry level you are comfortable. This is the time where you can find the value company with a good stock price. 

I know the strategy is very simple and maybe everyone already know however sometimes we tend to forget. Sometimes, simple make our life easier. Happy and enjoy investing.