How I Got To Use Investing Pro
This article might also be appropriate for the investing section. However, because it involves using a financial service, I will write it in the ‘reviews’ section.
For a long time, I’ve been the ‘geeky chart guy ‘, focusing on technical aspects of investing. However, a significant shift occurred when I sold all my shares in Teraplast.
I realized the need to broaden my knowledge and incorporate fundamental analysis into my strategy.
There was a time when I considered enduring a bad investment rather than accepting a loss, all because of the ‘stay invested dogma ‘. This widely promoted belief in staying put, no matter what, is deeply flawed. It’s important to recognize when change is necessary for progress, especially when it comes to your financial gains.
Although challenging, this experience has been a valuable lesson. It has led me to deeply question and ponder the ‘stay invested’ dogma. For several reasons, it would help if you used it rarely and with caution.
I mean, even Buffet’s oldest investment, Coca-Cola, a company that he had held since 1988, went through a massive transformation.
Not only did Coca-Cola have fewer competitors back then, but it also had a more comprehensive range of products. The list of products is staggering: check it out here.
This company evolved and didn’t get stuck in the past, not resting on one’s laurels.
It’s crucial for every investor to critically evaluate their strategies. This process of self-assessment can lead to significant improvements in your investment approach.
Shortly, I was stuck with a bad investment, which was my second share of the pie of my portfolio, fearing closing it on loss.
However, I’ve thoroughly reviewed my investment process and learned from this experience, ensuring a more informed approach in the future.
I maintained an almost surreal calm, even as the stock plummeted by 30%. I could still sleep and eat, seemingly unaffected by the financial turmoil. It was a strange feeling, a mix of tension and relief, that I can’t quite put into words.
But lately, after a hiccup upside movement, I have realized that the downturn is not over, so I had to do something.
I missed many opportunities, which are called opportunity costs. I also realized that investing in this company went from bad to worse since selling its metal division.
The funny part was that I stopped doing dollar cost averaging when I realized the structures were developing for more downside.
I also realized that investing in this company went from bad to worse since selling its metal division. The funny part was that I stopped doing dollar cost averaging when I realized the structures were developing for more downside.
However, this experience has taught me to regain control over my investments, making me feel more empowered in my decision-making.
This newfound empowerment has inspired me to continue exploring new investment opportunities, instilling a sense of control and confidence in my investment journey.
So, where could I “park my money” instead?
I was initially using the free membership of investing.com, but I missed my 30-day trial and ended up with an unwanted membership. However, this was a blessing in disguise as it allowed me to explore foreign companies.
I started analyzing charts from different regions of Europe, including Great Britain (UK100 index), France (CAC40 index), Germany (DAX30), Italy (ITA40), and Belgium (Bel20 index). This new venture into foreign companies has sparked a sense of intrigue and excitement as I delve into new investment opportunities.
The thrill of discovering potential investments in unfamiliar territories is genuinely invigorating.
Before finding a company, I must state that I have not significantly invested in a foreign company. However, I recently decided to explore this avenue and invested in an England-based company.
Post-selling Teraplast company era
After selling all Teraplast stock and doing some diligence, I am doing fundamental and technical assessments of this new company. I’ve invested in it, but I was lucky enough that this company had the perfect entry.
After a month and a half, I made about 15%. When I exited it, I considered it a stay. Still, a few red flags, such as the company’s high debt, which could indicate financial instability, the withdrawal of a critical medication from the market, which could impact the company’s revenue, and finding better opportunities, would have weighed it in closing it.
I wasn’t the only one concerned with the previously target price; a few reputable investment analysts considered it after the withdrawal.
Investing Pro final considerations
Watchlists
You can customize the list and monitor the stocks you are interested in through this. It has five menus: Market View, Risk, Efficiency, Projections, and Health.
Investing Pro’s Watchlists section and its layers are easy to use and include all the tools below.
The overview section includes the Current Price, your set price target, fair value estimate (both the investing team’s and analysts’ stock value), overall health, adjusted market cap, dividends analysis, Relative strength index (RSI), price metrics (P/E, P/BV), enterprise value and debt exposure, and float shares per total shares outstanding. I mostly set targets from this tab and compared them with the two estimated targets: investing and mainstream analysts. Besides Fair Value components, I also use Overall Health. These two helped me quickly discern through multiple companies I am looking to.
Time and timing are essential in investments because they help you navigate endless stocks without dizziness.
Disclaimer: Fair Value (analysts’ targets) is not an absolute measurement, and you should use it with a grain of salt; it should not be your target. You should have your estimation before looking at these numbers! Otherwise, it will influence and lure you to invest in it, not paying attention to red flags (when there are any) and skipping the necessary steps before choosing a company!
Risk section
The risk section incorporates the following metrics: 5-year beta, cash to total capital, total debt to total capital, current ratio, debt to equity, financial leverage, interest coverage, cash ratio, and quick ratio. From this palette of indicators, I use cash to total capital, total debt to total capital, and debt to equity.
Efficiency section
This section incorporates the numbers: Gross Profit, Operating Income Margin, Pre-Tax Income Margin, Return on Common Equity, Return On Assets, Return on Invested Capital, Piotroski score, Assets turnover, and Levered Free Cash Flow.
Projection tab
This section includes tools like Revenue Growth Forecast and EPS Growth Forecast. More features that incorporate forecasting in some advanced forms are available for upper tiers. But I only use Revenue Growth Forecast.
I compared it with my forecast price. I use a technical method called Refined Elliott Wave to forecast the future price of assets.
Health tab
This tab has interesting metrics like the Cashflow Health and Profit Health labels; you can sort through companies using them.
There are also price momentum labels; I don’t necessarily use them; I consider them useless. I use charts and my technique to consider how a stock fits into one area or another.
My journey with Investing.com has been transformative in my investment approach. This platform, along with another similar one, has enhanced my technical and analytical skills.
Its comprehensive market data, insightful analysis, and user-friendly interface have been instrumental in keeping me updated and guiding my investment decisions. For instance, it provided me with real-time data on the companies I was considering, enabling me to make timely decisions.
The reliability and accuracy of Investing.com have instilled a sense of confidence in my investment strategies, making it a game-changer in my investment journey.
Disclaimer:
This article does not recommend buying an investing pro service;
I have not received advertising funds from this company and will not if you register for its paid service.
If you want to sustain the free effort of this project, consider using the methods here.
