Obsession on low PE and high dividend rate

  I have dabbled in stocks market for more than ten years but still have mediocre results. I did not lose lots of money and also did not win much. My portfolio performance always lags behind the market index(Heng seng Index for Hong Kong). I always feel frustrated and blame myself:"Why not blindly buy the index fund but crave for the seemingly cheap stocks?"

  Just like craving for Big Sales in shopping mall, I obsess with cheap stocks in the stocks market.I always search for stocks with  low PE(less than 10) and high dividend rate(more than 5%).I think it is a wise choice to buy it. It has high dividend rate and low valuation therefore the safe margin is high. I can wait until the market awakes and let the price reflect to normal value. I think I am the frontier to buy such "underestimated" stocks.

  I was wrong almost every time! The stock price remains sluggish and even drops slowly over years and years. The dividend rate remains stable but the dividend paid to shareholder's bag keeps decreasing! It dues to regression of sales and profit and the market seemingly knew it in advance!

  When I step in the shopping mall, I know cheap stuff is not good and excellent products are always expensive. But I cannot apply this common sense in the stocks market and repeat the fault again and again. It is because human is stubborn. Human is arrogant! I reminded myself many times after each failure:"All stocks are under the eyes of millions of investors, if a stock is apparently cheap, you should have reasonable suspicion on it!"

  I recently started to read a book called "How to make money in stocks". I have read the Chinese-translation version several years before. This time, I would like to read the original English version. Hoping one day I can earn big money from stocks!