Value Stocks...Can't Lose

by Wafa Masoud
(Zarqa, Jordan)

I like to buy a stock after looking at fundamentals. I evaluate the returns on the stocks, the overall financial condition of the company, then the market conditions. Then the state the stock is in, in terms of price, volume, overall interest. If all is well, I go ahead with a good size pilot position. If all is well I may increase the position size the next day or same session depending on overall conditions. Most ......Most importantly I ask my self: If I was another investor or fund at the current price would I sell? If yes, I would begin to exit in stages. Accept my humble tip. Wish you a profitable trading.

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Value Stocks...Can't Lose

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Apr 07, 2008

VALUE STOCKS
by: JS Oberoi

I do agree with you completely. If you do not have inside knowledge of a small/medium marketcap compay's business profile - then stay away!!!
Stick with the index based stocks or really good high market cap companies if you are not a professional. Chances are that you will lose money if your entry is timed to coincide with the market hype. Smart money will be selling when you are buying.
So stick to value stocks on declines in a bullish uptrend and if you are a futures trader then you can try to short the stocks on rallies in a bearish downtrend.
The definition given by Craig for bullish uptrend viz 10 days moving average above the 30 days moving average when the overall market is trading above its 200 DMA and vice-versa seems to be a very apt description of market sentiment and conditions.
Craig - your site is awesome!!!!!

Feb 23, 2008

Looking for a strong cash flow
by: Anonymous

It has been my experience that looking for value stocks with strong cash flow is vitally important. It can be difficult to differentiate between an undervalued company and a firm in a death spiral.

As a way to try and lower the risks in this, the stronger cash flow often suggests that the firm does at least have a business underneath that has some value and will hopefully pull itself out of the mess it is in.

In contrast, a business that isn't bringing in decent amounts of money is probably dead already - it just may not yet realise it! Personal experience leads me to believe that many 'turnarounds' just don't turn - instead they expire!!

Whilst there can be some exceptional profits and opportunities in the value world, as with any other trade or investment, objectively assessing the situation is vital.

Best wishes,

Stuart

www.stockexchangesecrets.com

Feb 01, 2008

Bear Markets
by: David Fletcher

Even value stocks can lose in bear markets. From a traders point of view you would then be looking for weak stocks.

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