>>13221982>How did you learn to trade?I didn't learn, and in fact don't know how to trade.
I pick stock with the following criteria:
1/ I must understand the business model and judge it's made to last. "Has been selling electricity to customers for centuries plus is experimenting with new energy sources?" sounds okay. "Revolutionary leverages blockchain processes to optimize supply chain issues through quantum computing"? Yeah, I'm gonna wait 10 years or so before investing in that.
2/ like I said, PER is a good indication of how much you are paying. 15 is good, 12 is better, 7 is great. Maybe 20 or even 30, but then it must be something really exceptional like legalized gambling with a state monopoly (yes it is publicly traded in France!), or liquor with a long history.
3/ Look at things like debt and current assets to see if the company is not spiralling into disaster (that would explain its cheapness)
4/ on the other hand, if you see that several hedge funds are short-selling it, that is promising on the long term, because most likely they'll stop someday , and you will then have bought on the cheap.
Then, I cash in dividends for years (here 2% to 4% a year is common, and I even have a 10% company in my portfolio). And if/when a stock raises significantly, I gradually sell some of it. Then I keep the money free until a good opportunity arises.
This method got me about 3% above inflation a year, for many years. Of course some years (like 2020) are much better than others.
So it's not "get rich quick", far from it, but it snowballed into enormous sums.
