While I primarily focus on forex, I find the concept of value investing interesting, especially for long-term traders. It's about finding assets that are undervalued and have the potential to grow over time. While forex is more short-term focused, understanding value can be helpful in identifying currencies that might be temporarily undervalued due to market sentiment.
Value Investing
- Thread starter Forexer Guru
- Start date
I am interested in two things:
1. An asset that may be undervalued
2 An asset with the possibility of sudden upward trend within the next few days
That is why my strategy sounds confusing if you ask @schizo
I determine this through both fundamental and technical analysis
This I'm calling BS on.
You cannot use fundamental analysis to predict price movement on a several day time scale.
The data is reported quarterly.
Even if you had secret illegal backdoor access into the live financials of a company, the rest of the market doesn't.
You can look at the live price of a stock and use fundamental analysis to determine if you think it's a good deal, but you cannot reasonably predict whether it will be an even better deal two days from now based on fundamentals.
I do not use fundamental analysis alone
Fundamental analysis is a method of determining a stock's real or "fair market" value. Fundamental analysts search for stocks currently trading at prices higher or lower than their real value. If the fair market value is higher than the market price, the stock is deemed undervalued....
AIN value rose as seen in just three days
EEFT also rose as seen below
however, I didnt trade EEFT because I wanted to open a trade at 107 level shown above
I am going to show you that its possible
For RJF, I expected it to move up but it dint close the trade at nil profit (because of high impact news today that may affect stock trading)
what I have posted above is a response to this
As long as you are using some price action analysis to enter your trade,I see nothing wrong with what you are doing...You have a predefined risk reward,so you are halfway home.
As for "real value",I would be curious how you determine that.You dont strike me as the DCF sort of guy projecting free cash flow 10 years out and coming up with intrinsic value..
Regardless,nice trade!
As for "real value",I would be curious how you determine that.You dont strike me as the DCF sort of guy projecting free cash flow 10 years out and coming up with intrinsic value..
Regardless,nice trade!
The fact is maintaining a journal for your value-investing journey will undoubtedly serve as a valuable resource for self-reflection, learning, and tracking your progress.