Bull makes money, Bear makes money, and Hog got slaughtered

By now, you should have heard enough of how badly hit the stock market is. I shall give you a break, and present to you the brighter side of the story.
As the mission statement of this Blog advocates – Buy Low, Sell High. This situation now actually gives you a chance to demonstrate this simple logic. The only problem is when is the low? Sad to say, I don’t know. But that doesn’t mean we should stay away from the market, because the bottom could be yesterday or tomorrow. Here are some ways to capitalize this ‘correction’:

1. Look for high growth company and only high growth company. They are the one with accelerate growth. I.e. Not only its profit and earning are growing, the rate of grow are increasing each quarter. Not all stocks move in tandem with its company, some stocks are broken, but the company remains strong.

2. Use a Top-down Pyramid investment strategy. I.e. if there is a good company that you like to invest, you can start by buying 1 lot. If the price falls by a few points, buy another 2 lots. If it falls yet again, buy 3.

3. Buy good company whose shares has just been upgraded by analyst, but somehow tanked due to the Bear. These are the one on a ‘catapult’, waiting to spring back.

4. Buy when every headlines read “Sell Sell Sell, Bear is here”. And the uncles in your Coffee shop swear not to touch shares anymore… All bottoms look like this.

For the past 2 weeks, my portfolio is down 10%. I’ve just started to accumulate slowly using the top down pyramid strategy, I believe this is not the cul-de-sac of the bull. Many companies are reporting good profit, and the government is still projecting good growth for the economy. I am not urging you to follow me, you have to check you financial status and your appetite for risk. Remember, Bull makes money, Bear makes money, and Hog got slaughtered.

Have been busy recently due to my new born and work. Next week, I should be able to share with you more on the High Growth companies.