Share Investment Strategy: Buy Low Sell High

This morning in the Sunday Times, there is an interesting article on the most talk about share investment strategy and that is "Buy Low Sell High". But in stock market, when is the market bottom? When is the bottom of your stock? Grasping the market timing would seem to be the best option but timing market is extremely difficult due to volatility of the market.

So in the news article, they have experts to tell us how to "buy low, sell high" using 6 buying strategy.

1) Target and hold blue chips

Blue chips are suitable for people who do not have time to monitor the market and they are usually the first to benefit in any uptrend

2) Promising Business models

This is somewhat similar to Warren Buffet's investment style where the business model have great influence on his stock decision.

3) Look for promising 'turnaround' companies

These companies are usually ignored by investors and their stock prices are at the bottom. Studying the development of such companies might let you know when they are making a turnaround.

4) Look for bad news

Bad news that have temporary effect on companies usually will drive stock prices down, that is when buying opportunity comes in.

5) Spot undervalued stocks using PE ratio

Company stocks that have low PE ratios and having robust earnings growth might be a good stock to buy. Low or high has to be measured against those other companies from the same industry.

6) Identify bargain buys using PB ratio

Stocks that trade at a discount to its book value are worth looking into. This strategy usually applies to property developers and fiance companies which depend greatly on their assets for income generation.

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