A study on stock portfolio selection and trading strategy in the Taiwan stock market

• Main Authors: Liou Chang Shing, 劉昌賢
• Other Authors: 何文榮
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/38715738190382404551

碩士 === 開南大學 === 財務金融學系 === 97 === A study on stock portfolio selection and trading strategy in the Taiwan stock market Abstract In Taiwan, the stock market becomes a major tool of investments. Owing to a poor foundation in the fundamental research and the technical analysis, investors seldom make money in this market. In nine case of ten, most of them are losers. It’s really a terrible nightmare for investors. Due to the investors are not familiar with the professional knowledge and trading skills. This study aims to develop a model of stock portfolio selection and trading strategy to fit investors’ requirements. This model will provide investors a method to boost their return and decrease their loss. The strategy of “value investing” is a way to pick up stocks, through evaluating all industries and finding a potential industry, choosing a truly profitable company from the selected industries. After deciding the stock, this model uses the technical analysis to find a good price to buy, to hold, and to sell. It’s a model to promote the percentage of profits and to minimize the risks of damage. The evaluation of this model is according to the macroeconomics and industrial analysis in 2008, thus the back-testing period is during January to August. After real proving test of using this model, the whole performance of earning is 11.86%. The performance was better than the whole market’s performance (the market’s loss was 16.958% at the same time). The results indicate this method and strategy can provide investors an efficiency way to investment. Key Words：Value Investing, P/B ratio, P/E ratio, Stock evaluation, Technical analysis, Valuation of industries, Trading strategy.