How not be the first to sell and last to buy (BT weekend article)

Over the weekend, I read an interesting online article titled "How not to be the first to sell and last to buy", and I believed most of the investors encounter this problem too.. To combat this, we have to first understand the human psychological factor. An example quoted from Business Times, "If a book makes it into the international best selling list, more people will be enticed into reading this and that in turn will boost sales. So apparently one trick employed by publishers is to buy the books they want to promote from the retail outlets themself."

Similarily, the same mechanics works for stocks and shares too. Personally, my style is that I would search for undervalued stocks using fundamental analysis and hopefully, my entry will be earlier than the fund houses(simlar to the publisher in the example that I quoted earlier). This may maximise the stock potential and also provide one a good margin of safety too but one downside is that there is a chance that the stock's price may stay stagnant hence patient is the key for this approach's success.

Regardless of whether you are an investor or trader, they share the same objective which is avoiding being the first and last to sell. I will share the approach that I have adopt and also my portfolio in my next few posts... Time for me to sleep and hopefully I can pass my driving test tomorrow else it will result in unnecessary expenses and time!