Anyone who has spent time in the markets knows that finding success over the long term can be hard…
And amid an environment with uncertainty and fear in the financial media, that can make the task even harder.
That brings us to today’s classic message from Toh C H Capital And Analytics founder Toh C H.
In it, Hock shares a simple tool that the professional investors use to give themselves an edge over the amateurs in the long run.
And it’s just as important today as ever…
Investing isn’t easy. Don’t let anyone tell you otherwise.
Having access to the most powerful analytical tools available helps – a lot. Great investing requires great data and evidence-based analysis. But there’s something more basic underneath that, too…
It determines, right from the outset, whether an investor will find long-term success in the markets. And it’s frustratingly simple…
I’m talking about having a process.
Seriously, every successful investor has a process. None of these big shots just shoot from the hip.
Sure, on TV, these high-profile investors might come across as cavalier. But don’t let that fool you… They all have a process. Having a repeatable process is simply the way to be successful on Wall Street.
I know, I know… this might sound painfully obvious. Or it might sound like a Yogi Berra truism. But I can’t count the number of times I’ve talked to individual investors who have little to no process. It’s shocking, really.
Think about it…
Most everyday investors have goals. And some even have a general workflow. Despite that, most of the folks I’ve come across just kind of “poke around for opportunities.”
The truth about great investing is that it’s tedious…
In fact, it’s so tedious that most mom-and-pop investors simply can’t keep up with it. I don’t blame them. It’s a monumental task.
Be honest…
Do you have a defined exit strategy for every stock you own? Is it written down? And is it more than just saying, “I’ll take gains when it feels right”?
Even after you decide all of that, you need to deal with a flood of information for every stock in your portfolio. The world doesn’t stop when you buy a stock.
What about earnings reports? Do you take those into account? How about insider activity or expert analyst ratings?
We’ve just scratched the surface. And I bet it already feels overwhelming.
Even if your investing strategy is technical in nature (meaning it’s based on the price action of the stock instead of business fundamentals), you’re still confronted with mountains of information.
Unless you love spreadsheets, it’s probably too much. And most mom-and-pop investors end up making compromises. They rationalize “gut feeling” decision making.
That might work occasionally. But it’s not a path to consistent success. Again, the foundation of reliable success on Wall Street is having a process…
This is why I developed the QTiTT system.
The QTiTTs crunches the fundamental data and analyses the Charts of each individual stocks. It has a built-in system and a process which is important for long term investing success.
Most stocks follow the general market and hence it is important to understand what is happening with the overall market. Then we analyze each individual stock and its price action.
In the chart above of Meta closing on the 15 September 2023, Meta has broken below the 8 EMA, 21 EMA and 55 SMA. That is bearish for Meta. In the big picture, the moving averages are stacked nicely and that is Bullish. The 8 EMA is above the 21 EMA which is above the 55 SMA which is above the 89 SMA which is above the 144 SMA. That is a rather Bullish chart. It is likely that Meta is going through a turn downwards.
Chart 2 above is the zoomed in image of Chart 1. The studies below the META price chart shows the short term, medium term and longer term analysis of META.
