06 Mar 2020
I would like to build up my own first portfolio. What figures should I be looking at? Which indicator should I be looking at for the right time to sell?
I have about 20k to start. This is the first time i'm building up my equity portfolio. Hope to learn more from you. Thank you very much
You should be looking whether are you a trader or investor. A trader buys and sells stocks on a short term, while an investor will buy and hold stocks for a longer term. If you are still new to investing, I would recommend you to invest instead of trade as the market can be very volatile in this current market.
Firstly, you need to determine what type of investing style is suitable for you. Here are some of the style - Income investing, value growth investing or growth investing. Different style required different type of analysis and invest in different type of companies. If you are those investors who require regualr income then income investing will make more sense to you. You can also choose to mix your portfolio with different style, for instance 70% income investing 30% growth.
Secondly, if you choose income investing then you should looking at the consistent of the dividend and the dividend payout ratio follow by the type of business. Do avoid cyclical business as they are not income stocks.
Lastly, For selling I only have 2 criteria, either the company's business fundamental change or super high valuation.
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