As reflecting a fair value by Jitta Line, whenever the stock price is under Jitta Line, it might be a good investment at that moment because you can buy
If you invest in a company with pretty good cash flows, whose price isn’t too expensive compared to its fair value, then you have very little chance of losing your hard-earned money over your investment.
As for when to invest, here’s a simple guideline.
- Jitta Score > 7 Buy when the price is below or at Jitta Line
- Jitta Score 5-7 Buy when the price is 20% below Jitta Line
Jitta Score > 7
Buy when the price is under or at Jitta Line
Jitta Score 5-7
Buy when the price is 20% under Jitta Line
Follow this guide and you’ll significantly lessen the chance of losing money.
Stocks that have Jitta Score of 5 or 6 aren’t ideal for long-term investment. Their fundamentals aren’t super stella, and they may not be capable of producing high investment returns for years on end.