Value Investing

[tomkat22]

@tomkat22 do you remember previous week's Regeneron Pharmaceuticals Inc CFD trade? my 2% sl was never hit, after four days I was 4% up.
below is the link and a screenshot
https://www.elitetrader.com/et/threads/stock-trading-select-assets.378490/

I only buy undervalued stocks which renders the use of stop-loss unnecessary

Also I don't want to hold a trade for more than 4 days because opportunities are numerous




View attachment 335289

Good luck with your strategy but if you're gonna swing trade you need to give the trade more wiggle room.

 

[Forexer Guru]

you're gonna swing trade you need to give the trade more wiggle room.

thank you for the advice

 

[taowave]

You havent divulged what you consider a Value Stock and what methodology you are employing to discover them.

Is it a DCF model??

Is it a relative valuation vs historical comparisons?

Are there technical signals that lead to an Entry signal?

You are using a time stop of 3-4 days?

Why dont you take a 1 month trial to Portfolio123 and test you "belief" system??

What you are doing makes no sense,which is why it could possibly work

@schizo you're so wise you should have been born in 3024.

Just ignore what I said in my initial post because it appears contradictory. I did some research over 6 months, and I found a relationship between undervalued assets and stop-loss position

I would like someone to point out why buying the identified asset is not a great idea because once or twice a month, I will get it wrong, and that will be a great time for me to perfect my skill.

 

[Forexer Guru]

Why dont you take a 1 month trial to Portfolio123 and test you "belief" system??

you have a point, I found that in forex trading, a strategy can work for months, and there comes a point where it ceases to be effective

 

[Forexer Guru]

Why dont you take a 1 month trial to Portfolio123 and test you "belief" system

that will not make sense because I want to get someone's input.
I do not consider your statement sensible at all because it does not help me understand stock trading at all

What you are doing makes no sense,which is why it could possibly work

try to post something else. You can do better than this.

 

[taowave]

You dont want to do the work,and you are coming off less than motivated.

Read a starter book like Stock market Investing by Jason Kelly..

You talk about value stocks and intrinsic value,but havent mentioned anything about Discounted cash flows or historical relative valuation.

You throw out Graham,but have you read the Intelligent Investor?? Are you familiar with the Graham formula? Do you understand the concept of value investing,discount to Intrinsic and the value investing approach??

If you did,my statement would be "sensible"

that will not make sense because I want to get someone's input.
I do not consider your statement sensible at all because it does not help me understand stock trading at all



try to post something else. You can do better than this.

 

[Quanto]

@Forexer Guru, don't listen to the always pessimistic nay-sayers;
rather believe in yourself and go your own way, man!...

 

[taowave]

Mr backtest is advising against backtesting??

Hmmmm....

@Forexer Guru, don't listen to the always pessimistic nay-sayers;
rather believe in yourself and go your own way, man!...

 

[Forexer Guru]

You dont want to do the work,and you are coming off less than motivated.

Read a starter book like Stock market Investing by Jason Kelly..

You talk about value stocks and intrinsic value,but havent mentioned anything about Discounted cash flows or historical relative valuation.

You throw out Graham,but have you read the Intelligent Investor?? Are you familiar with the Graham formula? Do you understand the concept of value investing,discount to Intrinsic and the value investing approach??

If you did,my statement would be "sensible"

I may come to this later on.
For now, I can't go back to reading yet I haven't tested the information I've got so far. Right now, I am just testing a few things (only I doing the testing not you and me). If a need to do further reading comes, I will ask you, 'Hey dude, where can I find those books?'

 

[taowave]

How do you define a Value stock??

I may come to this later on.
For now, I can't go back to reading yet I haven't tested the information I've got so far. Right now, I am just testing a few things (only I doing the testing not you and me). If a need to do further reading comes, I will ask you, 'Hey dude, where can I find those books?'