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Community


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Online Share Trading

Engage and learn about markets and trading online

BUYING SHARES

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Not applicable
I've always heard PE is the way to go when deciding what shares to buy. Anyone got any other suggestions?
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12 REPLIES 12
SimonPB
Valued Contributor
PE is part of the puzzle.
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Not applicable
Is there any other part that I can use? What graphs whould be handy to use when deciding what shares to buy and sell?
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DCTrader
Super Contributor
Use tarot cards and before any trade I consult with my Sangoma... he throws the bones and gives me the go ahead. 37% return so far using him.
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ABuzz
Super Contributor
I use the SFM price charts quite extensively. Good to plot Moving Averages (various periods depending on your investment strategy) They also have a lot of other good indicators and plotting tools like Bollinger Bands, Stochastics, Volumes etc. it is worth going into this and studying it for a while and once you are familiar with what each one is giving you then apply them to real trading situations. Do your own homework and "play" with them a bit before you invest using their "guidance" as they are only tools and the better you know how to work them the better they can work for you!
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Taurus
Super Contributor
And you realy felt good when you made that reply?????
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Not applicable
Thanks DC. Send me his email. HAhaha.
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DCTrader
Super Contributor
G, wasn't being sarcastic. Just implying that trading aint an exact science... But I'll consult my moral and ethics handbook before considering any further replies...
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DCTrader
Super Contributor
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Dabbler
Occasional Contributor
Interesting question, but here's a thought...the P:E ratio we get on this site, is it a regularly recalculated ratio, or just the one using the price as and when teh results were last releasaed? That could have significantly changed since. I generally rework my own P:E ratios, although not scientific and then use it to compare between possible investments in the same/similar category e.g. Murray & Roberts, versus Group Five, versus Raubex, versus Grinaker etc. I use it as one of a few selection criteria for deciding on a share to buy. Furthermore, I always try and get results around the same time as occsioanlly some companies have widly varying year-ends and their results are not fairly comparable, so rather use an annualised 6 month figure if it's closer. I am interested in other comments on this and also to see what else people use to determine a good share to watch and possibly buy-into.
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numnuts
New Contributor
Hi Abuz Could you please explain to me your SFM method, as I am interested in finding new methods on how to buy shares. Were can I find this info?
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Not applicable
great site for TA's chartschool.com for beginner in tech analyses
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dimitrius
Regular Contributor
RXYZ, if you want to use PE ratio to invest your money, then you should be looking at all the fundamentals available, and not just the PE. I also wouldn't be using the PE on the SFM website. Calculate it yourself over a three year period. Then also take a look at other fundamentals. Once you're happy that a company is undervalued, then use simple technical analysis to time your buy. But if I was you, I wouldn't just use PE ratios. They're not a good enough guage. If you want to jump in and out daily, then forget the fundamentals and trade with technicals only.
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