Stock Trading Simplified: Bottom Fishing

     This is one of my favourite trading strategies- Bottom Fishing/ Picking. This is an art in fact! Once the targeted stocks reduce in valuation & reaches 7-15% below its original share value & if the stock is having strong fundamentals and healthy balance sheet (debt free) then it’s a perfect time to buy the particular stock. Some calls this “Value Investing”. The stock must have reduced in valuation not because of its poor micro economics, but because of some macro-economic variables/ overall market weakness which is supposed to recover in a shorter duration taking the stock back to its original valuation, in fact higher than that, which fetches you desirable profits. But beware & be cautious of those stocks which are reducing in its valuation because the company fundamentals are becoming weak & not because of the overall market weakness. Those stocks though available at lower valuation, which can easily lure you, should not be selected into your portfolio. Patience, sharpness, analytical skills, matured thinking are some of the qualities to be nurtured while investing vide stock trading.