My Stock Investment Strategy - Fundamental Analysis

You might be asking how to pick a winning stock. Well, for me, fundamental analysis is all you need.
As i said before, when you buy in a stock, you are actually invest in the company. So you have to think like a businessman. So what will you invest if you are a businessman, will you buy a RM10k company that continuously losing RM1k each year without any sign of recovering? Or will you buy a company that cost you RM100k, but with RM10k of earning each year? Of cause you will buy in the RM100k company if you are a businessman.

Stock market is just the same, my strategy is picking stock base on the company's annual financial report. Only pick those companies that are making profit, but of cause there are still many factors need to consider and study in details. However making profit is the most important factor (thanks Goh for mentioned about this, so that i won;t confuse others). Don't ever bother about the price of the stock, the cheaper it is does not mean that it is really 'cheap'. You have to go through all the annual  financial  reports for at least past 5 years, and preferable for the past 10 years or more.

There are some who actually supported technical analysis, but for me i'm just not good in it. There re too many techniques to be used, it is actually quite simple if you have the tools. However i just don't really get the concept behind. It is totally different from fundamental analysis, without taking consideration of the company financial status.

If you like to go into technical analysis, i would suggest that you just take it as reference, but not using it to pick stock. It is probably good for buy/sell timing from my perspective. However to pick a stock, fundamental analysis is the only correct path!

All the successful stock investors like Benjamin Graham, Warren Buffet & Peter Lynch only rely on fundamental analysis to generate them high return consistently every year. George Soros which is also a very successful investor is relying on both fundamental/technical analysis to pick stock.

Well, i'm not sure if anyone of you knowing any successful investor that rely on technical analysis only. If you don't, then you shouldn't pick a stock using technical analysis.