Value trading

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Querist : Anonymous (Querist)
26 February 2013 What is meant by value trading

27 February 2013 Hi

Value trading is best described as buying a stock with the expectation of selling the same (hopefully with a gain) in a short period of time based on the realization of a single or multiple triggers. This trigger can be fundamental in nature such as normalization of sales/ profit margins (from a temporary low), business event such as launch of a new product or new capacity or change in the business environment for the better such as moving from extreme to moderate pessimism .

In addition to the fundamental issues, the trigger could be technical in nature such as short term overselling of a stock due to unexpectedly poor results or some temporary event such as elections which do not really impact the fundamentals of the business

In all these cases, one is expecting that the trigger will occur in the short term and the stock price will get a quick bounce (10%+) and one would be able to exit with a nice little profit

27 February 2013 For more details, about Value Trading, go to the following link:

http://valueinvestorindia.blogspot.in/2012/09/value-trading_27.html




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