Stock selection strategy is the prime factor for the success of any value investor. In addition, it also depends upon the psychology of a trader and the ability of facing a market that is more stable or even experiencing turmoil.
There are 3 simple points to remember while doing value investing Indonesia
1. Understand fundamental analysis well
The prime motive of the fundamental analysis is the financial statements published by companies who have listed their shares on the IDX. This is good source of reference for traders with the aim of value investing.
When carrying out fundamental analysis, you should know what the plot is, or at least you should know what to check while analysing the data.
Often, many investors have tendency to over depend on the valuation, even though it does not guarantee the profit later. If you are buying shares because it is cheap, that company may go bankrupt and so forth.
2.Apply Timing to Buy and Sell the Right Stock
Timing is also a determining factor whether we can lose money or not.
Because, there is no guarantee that if you have bought cheap stocks, it will not continue to fall again. So whether we want it or not, we also have to know the right time to invest.
3.Be patient and do not panic
It is possible that you have chosen the right stock, but because the stock has not moved up and down, you should not sell it without any further consideration. In fact, Warren Buffett is successful because of this patience.
He holds shares which he has bought for decades, even some shares he has never sold at all, like coca-cola shares. And the result is in front of us.
There are many more concepts about investment value which u should go through, such as intrinsic value, margin of safety and so on.
So for all Indonesian value investing traders! Hopefully what I write and present on this website can benefit all investors