| Welcome Guest, please sign in to participate in a discussion. | Search | Active Topics | |
Registered User
Joined: 6/24/2005
Posts: 38
|
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?
|
|
Registered User
Joined: 2/13/2006
Posts: 1
|
|
|
Registered User
Joined: 12/8/2004
Posts: 1,301
|
Yep, I have only one thought. Buy a good quality value mutual fund. It will beat motley fool every time.
|
|
Registered User
Joined: 12/19/2004
Posts: 457
|
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.
|
|
Registered User
Joined: 12/8/2004
Posts: 1,301
|
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.
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
How about "heck of a lot" next time....we'd appreciate it! Thanks!
- Doug
Teaching Online!
|
|
Registered User
Joined: 12/8/2004
Posts: 1,301
|
Sorry!!!! It won't happen again.
|
|
Worden Trainer
Joined: 10/1/2004
Posts: 4,308
|
No problem...just makes the forums a bit friendlier! 
- Doug
Teaching Online!
|
|
Registered User
Joined: 1/28/2005
Posts: 6,049
|
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
|
|
|
Guest-1 |