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#1
12-11-2005, 08:12 AM
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Buy Good Value and/or What Other People will Like?
Honestly I do both. I buy what I think is undervalued as well as "jump on bandwagons" although I do much less of the latter. Isn't that what the issue is regarding TA vs. fundamental analysis i.e. what people like vs. what is undervalued? IMO though the "jumping on the bandwagon" method is much more stressful and leads to alot of buying and selling.
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#2
12-11-2005, 09:11 AM
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Re: Buy Good Value and/or What Other People will Like?
[ QUOTE ]
Isn't that what the issue is regarding TA vs. fundamental analysis i.e. what people like vs. what is undervalued? [/ QUOTE ] NO! "Jumping on the bandwagon" might be called, Momentum trading.
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#3
12-11-2005, 04:39 PM
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Re: Buy Good Value and/or What Other People will Like?
[ QUOTE ]
"Jumping on the bandwagon" might be called, Momentum trading. [/ QUOTE ] Or the Greater Fool Theory, depending on who you ask.
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#4
12-13-2005, 03:43 AM
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Re: Buy Good Value and/or What Other People will Like?
I'd rather buy what people like. They might never like your "value" stock. It won't go up if people don't buy it. You can never be sure of what "good value" is anyway. Companies lie all the time. Or they have an inflated perception of the worth of their product or patent or whatever. I don't see anything wrong with lots of buying and selling anyway. You don't get your profit until you close the trade. How does Walmart make their billions? Churn and burn, baby. The less time the product spends in the store, the more money they make.
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#5
12-13-2005, 11:29 PM
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Re: Buy Good Value and/or What Other People will Like?
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I don't see anything wrong with lots of buying and selling anyway. [/ QUOTE ] Ever heard of transactions costs? Capital gains taxes?
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#6
12-14-2005, 12:32 AM
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Re: Buy Good Value and/or What Other People will Like?
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How does Walmart make their billions? Churn and burn, baby. The less time the product spends in the store, the more money they make. [/ QUOTE ] Your analogy has nothing to do with buying and selling lots of stocks. By the way, I would gues that buying and holding is how people at Wal Mart make millions: 
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#7
12-14-2005, 12:33 AM
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Re: Buy Good Value and/or What Other People will Like?
[ QUOTE ]
I'd rather buy what people like. They might never like your "value" stock. It won't go up if people don't buy it. You can never be sure of what "good value" is anyway. Companies lie all the time. [/ QUOTE ] Yeah, I have to agree with this. If a company is fairly valued or close to reasonably valued and they are likely to have good news in the future they are more likely to go up than companies that are "undervalued". Plus we can be wrong, just as the market can be wrong.
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#8
12-14-2005, 12:35 AM
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Re: Buy Good Value and/or What Other People will Like?
By the way, I would gues that buying and holding is how people at Wal Mart make millions:
Not lately: WMT last 5 years
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