How to pick stock? ( part 1)

This is something that always in my mind since my first investment on year 1998. I was actively invest in Stock market since year 2004, as I made use of my internship period (three semesters) to learn a Lot of investment skills from cari, http://Chinese.cari.com.my.

Below is the way where how I picked the stock and how I changed the investment style.

1. Tips

At first, with the limited knowledge on investment, I was learning out the investment through the sharing of the net friends in the forum. I just follow what they said and I started to getting invested in then stock market. At that time, it was very quiet market, what I invested through was topglove.

Case: top glove

Top glove was growing very fast at that time, it grew up by opening up a lot of factories and took up a lot of oem businesses. At that point of time, SARS just happened and it made the world to be more cautious about the cleaniness of the environment. Another advantages that Malaysia glove industry enjoying was the electric tariff set by the government. This gave the opportunity to top glove to faster the growing processes.

Under dr. Lim leadership, they had made the vision of become number one glove maker in the world.

Buy when we look back, the pe ratio had been rocket high until it created room of dropping. Anyway, this was the first successful investment of mine in my life. I would like to thank harimau who like sharing with us last time.

Lesson learned:
1. It is good to invest in the company who just started growing instead of stabilize the growing period.
2. We must know when to sell if the stock price is much higher than intrinsic value even if it is a good investment.
3. We cannot build the self confident if we only follow what other people did.
4. It is always a chance to make a good investment, provided you know when to buy and when to sell.