Q & ACategory: StocksDo you purchase any indicator system to help you
Tan Phei Ling asked 2 years ago

Hi Mr. KC Lau,

I am a fan of you. I read almost all your newsletter. AI wish to thank you for the knowledge and enlightenment you have brought to my life. Recently I came across an indicator system which can tell the bottom fishing and give signals to buy in certain share in Bursa. As I only have 3 months experience in trading, I wish to ask for your opnion on this matter.

  1. Do you ever purchase or use any indicator? Do you think they are necessary to help you in your decision of buy/sell?
  2. Can you justify if it’s necessary for value investing?

Thank you for your reply. Really appreciate it.

Best regards,

Phei Ling

1 Answers
KCLau Staff answered 2 years ago

Hi Phei Ling,

  1. I don’t use any of these indicators. When you buy good companies and keep for long-term horizon, the timing is not really an issue. Just don’t overpay – paying too high a price will take a much longer time for the value to catch up.
  2. I don’t use any technical indicators. So there is really nothing I can offer to you on the technical side. 

Some people might make money using the technical analysis. Frankly, there are also people getting rich through winning the lottery. I just prefer method that has a much higher chance of succeed, rather than depends on extreme luck.
Hope this helps.