Asked on 26 Jun 2020
Before you invest, do ensure that you have sufficient emergency funds, ~6 months' worth of expenditure or more if you want more assurance/safety, and adequate insurance coverage.
You will need to consider other factors besides the drop in price before you buy. This can include future outlook, financial stability of the firm and nature of industry. If you have done your research and is optimistic of its prospect, you can buy the shares. The next consideration is price. You could determine a fair valuation of the company through projected free cash flow from their fianancial statement or a relative valuation to industry competitors or a blended analysis. Alternatively, if you think the share price will continue to go upwards for many years to come, you can just buy now.
Personally, I feel stock picking may not be the best approach as it is time consuming (as shown above in the valuations and research needed). Not only that, many, including professionals, fail to outperform the market over long periods. What you can do is to buy into index funds where it tracks the performance of a collection of individual stocks. There are many options for you to choose from such as roboadvisors (StashAway, Endowus, Autowealth) and regular savings plan (DBS Invest Saver, FSMone, OCBC BCIP). Through these platforms, you will be able to invest in funds (either pre-selected) or you'll have to choose yourself.
Do you see any long term prospect with this stock? Like what are their future plans? If you see that it will grow, any price now is a good price.
There is no defined time to buy or sell, even when the pros give their doubtful advice in the media.
try to take a view on the very long perspective, then entry/exit points are irrelevant.
you could read on that and what to avoid here:
I would really recommend you to read up on some books before you embark on your investment journey.
It would mean alot to take the time to read up these books which i started on my own too.
Also, you might want to understand your objectives and an overall view of what you want to target with the number of years you intend to invest.
I have document most of what I know to share with people like your self to start your investment journey. Be careful of what you invest and let me know if you have questions.
Show More Products