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Registered User Joined: 6/24/2005 Posts: 38
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Now there is a contradiction in terms if I ever saw one!
Seriously though, I am thinking about looking at a value investing newsletter, like Motley Fool's "Hidden Gems" to create a watch list, then use TA to find reduced-risk entry points. I realize that this is a far cry from the short-term trading or even trend following the most of us use our investing dollars, but I though I would ask.
Any thoughts?
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Registered User Joined: 2/13/2006 Posts: 1
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Registered User Joined: 12/8/2004 Posts: 1,301
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Yep, I have only one thought. Buy a good quality value mutual fund. It will beat motley fool every time.
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Registered User Joined: 12/19/2004 Posts: 457
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I don't think it is contradictory to combine "value" investing with technical analysis at all.
I'd look for value stocks that have momentum divergences on the monthly time frame, and are beginning to look like they are putting in a double bottom, or reversal pattern of some sort.
As long as you are willing to hold for long periods of time, as the value strategy requires, I don't see any contradiction.
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Registered User Joined: 12/8/2004 Posts: 1,301
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QUOTE (rmr1976) I don't think it is contradictory to combine "value" investing with technical analysis at all.
I don't think it's contradictory either, I just think there are a hell of a lot of professional managers that are better at this than we are.
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Worden Trainer
Joined: 10/1/2004 Posts: 4,308
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How about "heck of a lot" next time....we'd appreciate it! Thanks!
- Doug Teaching Online!
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Registered User Joined: 12/8/2004 Posts: 1,301
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Sorry!!!! It won't happen again.
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Worden Trainer
Joined: 10/1/2004 Posts: 4,308
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No problem...just makes the forums a bit friendlier!
- Doug Teaching Online!
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Registered User Joined: 1/28/2005 Posts: 6,049
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I don't think there's any contradiction between value investing and TA. TA is the analysis of price movement, money flow, relative strength and so on. If it works for OIL, the DOLLAR, CATTLE, BONDS then I see no reason it shouldn't work for value stocks.
I wouldn't buy something---I would try to create a "value screen" using Worden fundamentals. ( LOW PE, HIGH DIV. YIELD and so on ) Then create a "value watchlist".
Another idea is to create a watchlist for the ETF stocks already designated as value ETFs. Go to the "ETF Component Watchlists" and look at the component stocks for IWD, IWN, IWW, IWS, IJJ, IVE, DSV, EMV, VBR and so on.
Its also not necessarily true that because your buying "value" that it will take a long time before you see price appreciation. After all the idea of TA is to move the odds in your favor by finding strength, turning points, money flow, relative strength and so on.
Good Luck
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