Stock Investing,The absolute Science of Getting(10

Rise and fall are always right.

When investing in stocks, the average individual investor reacts very sensitively to the rise and fall of stock prices. But the market is always right. And the stock market price is always right. The rise and fall should be accepted as they are. If you do not understand this, there are many failures in your investment.

If you look at the characteristics of people who fail to invest, they usually follow other people or come in without deciding in advance what stocks to buy. And the money you invest is not quality money.

Most of the people who succeed in investing go with the stocks they need to invest in, and also select the stocks themselves. And the money you invest is quality money.

This requires an understanding of how investors feel. I want to stand in the mind of individual investors who do not have enough money rather than individual investors who invest because they have enough money.

Most investors sometimes engage in short-term trading while investing in a lack of money. I, too, make short-term investments. However, rather than simply short-term trading, it is more of an investment because it precedes the understanding and evaluation of the company.

When making these investments, you should do so with rising stocks. Also, the enterprise value must be evaluated first. Usually, enterprise value is not evaluated first. The basic value of the company, future growth potential, sales and operating profit plus, dividend or not, major shareholder holdings, and intrinsic value should be evaluated to some extent.

However, I do not trust the enterprise value assessment 100%. Future growth should be reflected here. Normal enterprise valuation is based on historical data. Therefore, it is not correct to say that ‘it will be so’ in the future. Therefore, it is necessary to check whether the company has growth potential.

Stock Investing,The absolute Science of Getting(9)

Investing in stocks is about sharing the results of enterprise

value growth.

Investing in stocks is not gambling. Investing in stocks is about looking at the future of enterprise and sharing the results of growth. Therefore, when the company grows and the stock price rises, it becomes a win-win for everyone to make a profit. But gambling is a zero-sum game.

The essence of stock is to become a shareholder of a company. It's possible to get a dividend by buying stock in the company of the product I've consumed. Therefore, investing in stocks is to share the results of growth as a business partner. And if you wait, sometimes it gives you profits as well as dividends.

Also, considering the continuous growth of the company, it is a good way to invest in the current No. 1 company in each field. All stock markets in the world are constantly booming and tumbling. In the process, marginal enterprises were expelled. And the share went to the last surviving company.

While investing in the number one company in the popular field right now, you can take a profit when the stock rises and use it as a buying opportunity when the stock goes down.

Stock Investing,The absolute Science of Getting(8)

Evaluate the enterprise value and invest in stocks of future

growth enterprises.

Regarding enterprise value evaluation, each enterprise value evaluator has a different evaluation method. Therefore, I would like to introduce it briefly rather than technically. If you want to know professionally, please take the enterprise value evaluator course.

I also have questions about enterprise value evaluation, so I took and passed the enterprise value evaluator training. And I've been through refresher training. The following is a simple explanation of how I evaluate enterprise value for stocks around the world.

First, the asset value is calculated by dividing the net assets by the total number of outstanding shares. Enter operating profit based on sales. After calculating the profit value by including the capital return rate, the intrinsic value is calculated by calculating the asset value and the profit value in a certain proportion.

In addition, in consideration of the company's growth potential, I enter the growth multiple based on my personal judgment. This will give you the target price of the stock you want to buy.

What is important here is the future growth potential of the company. Personally, don't be overconfident in evaluating enterprise value. The reason is the fact that the evaluation of enterprise value based on the data so far is a past evaluation.

So will it be the case in the future?

The answer is absolutely not.

Therefore, it is important to invest in stocks of future-growth companies. A company growing in the future may experience a temporary plunge or decline, but one day it will surely raise its purchase price and bring profits.

In that regard, I am also investing in future growth stocks after evaluating the enterprise value first. However, sometimes, an investment is made first and then the enterprise value is evaluated later. Even if the stock is good and the timing is urgent, this should not be the case. This is the part that must be corrected.

Stock Investing,The absolute Science of Getting(7)

The minus of the account is also your own money.

When investing in stocks, if the stock falls, the return is negative. For that reason, they often think that they have lost money. But I think differently.

I admit that the rate of return is negative, but I do not think that I have lost my money. This is because I do not sell if my account rate of return is negative.

In many cases, individual investors sell for a loss. Selling at a loss is sometimes necessary. The important thing is that I evaluate the company value in advance and buy stocks. This is because when the stock price becomes negative, they think they are doing a bargain sale and continue to buy with a grateful heart.

So, I include the minuses of the account in my money and add them up. And sell when it makes a profit. Investing in stocks and gambling are different from this point of view.

Stock Investing,The absolute Science of Getting(6)

Sometimes I trust and wait.

After you buy a stock, it can go up or down. The more you do, the more you have to trust and wait for the stock. Investing requires understanding the long-term trend. This is a very basic and effective method. If you understand the flow of the market or stock, you will not be swayed by short-term stock price fluctuations. So, if you follow the flow, you can greatly increase your success rate in stock investment.

For example, even if you buy the same stock, some will succeed in investing and some will fail. Success and failure are entirely at the point of sale. If this point is reversed, the stock investment will fail.

Stock prices are difficult to predict. However, there are times when everyone can see the market trend well once or twice a year. In particular, it is better for individual investors to ride in a bull market when the stock index rises rather than in a bear market.

However, most individual investors lack the patience to wait. If you react hastily to market conditions, you will use up all of your investment. Then, when the decisive opportunity comes, you are helpless and just wait and see. It is important to decide when to actively trade and when to wait.

So, invest wisely. Even if the stocks you own are falling, trust and wait.