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Value investing versus technical trading
By Eight percent per annum  •  October 16, 2008
By: Jay Some time back there have been some debate on other blogs about whether value investing works better, or technical trading works better or turtle style works better or whatever. It is very logical to think that technicians detest value investors and vice versa. Bcos their investment philosophy is completely different. One buys stocks that are mundane, cheap, stable earnings based on fundamental analysis. One buys based on short term newsflow, charts, momentum etc. It is very tempting to think that these different investors fight a lot. Like Cats versus Dogs, Chu vs Han kingdom, Man U vs Liverpool etc. To summarize the styles a bit, they probably look like the following: Champion style: Buy low sell high - sure win one! Short selling: Sell high buy low - sure win too! Value investing: Buy low, sell lower Technical trading: Buy high target sell higher but usually sell low Ok, just a joke. This is not your Wikipedia definition of the different styles. And also styles do not dictate whether you can win in this game. No matter which style you use, more than 80% of all investors underperform the markets and most retail investors don't even have positive gain to talk about. At this point, I would like to draw an analogy to pop music. Read more...
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By Eight percent per annum
8% Value Investhink is a value investing / critical thinking knowledge platform with the goal to share knowledge, help understand investing and finance, and help develop critical thinking skills. One important objective would be to help others understand the concept of value and avoid overpaying, especially for property.
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