Why I Choose Value Investing.

Have you ever hear people around you saying the followings:

"Whenever I buy a stock, the price drop".
"Better sell now if not the price will drop further"
"Wah, price keeping going up, I better buy".

Sound familiar? This usually from the mouth of a trader.

Traders base on technical analaysis where they look at chart and indicatiors.

My question is what does chart and indicators tells you? Does these tools provide information about the company stock you buying in? Do you know the value of the stock of the company?

I agree that trading can make quick bucks but it can costs you big time in just split seconds. Riches are made during the bull market, then what about the bear market?

The reason why I chose value investing is because I can make money in both bull and bear market.

For value investor, they make money when they buy, but for traders, they make money when they sell provide the market is up.

Value investing is based fundamental analysis whereby we look at the financial statements, the management and the business.

One important aspect of value investing is the principal of Instrinic Value and Margin of Safety. Once knowledge is acquired in these aspect, one will be able to invest confidently and safely.

Value investing takes time but it can generate consistent returns on a regular basis.

That is why I chose to be a Value Investor.