Have you ever had the feeling – the one where you are absolutely sure about a stock? You have done your research - dotted the i’s and crossed the t’s - and then guns blazing bought into a low priced stock because it represents “great value”, only to find that once you enter into the investment it falls, or fails to rise, drifting sideways and weighing down your portfolio. Sound familiar at all?
It does not have to be this way. By using this one simple technique, you can learn to avoid value traps and invest in stocks once they have upward momentum, catapulting your stock into profit right after you buy it – or at least getting out with a small loss and free capital to invest in the next good idea.
Yet most value investors will frown on this approach. Why? Because it involves technical analysis, and value investors know it’s not technicals that move the market but fundamentals. And the proof is in the pudding right?
Technical analysis can be the secret sauce we can add to our value investing to turn it up a notch – and I’ll show you how here.