Dispassionate
Member
- Messages
- 98
- Likes
- 1
How do you define a "momentum" stock?
How do you define a "value" stock?
How do you define a "value" stock?
Momentum/Value stock definitions
- Thread starter Dispassionate
- Start date
- Watchers 2
Trader333
Moderator
- Messages
- 8,753
- Likes
- 1,026
A value stock is one where its current price is perceived to be different than its true market value and therefore is likely to return to what the true market value is and this can be either under priced or over priced.
If under priced the value would be gained in buying the stock with the intention of exiting when it returns to the true market value and if over priced the value would be gained in shorting the stock with the intention of exiting when it returns to the true market value.
Paul
If under priced the value would be gained in buying the stock with the intention of exiting when it returns to the true market value and if over priced the value would be gained in shorting the stock with the intention of exiting when it returns to the true market value.
Paul
Danger Field
Junior member
- Messages
- 47
- Likes
- 5
Above poster has already addresses value stocks.Dispassionate said:
A momentum stock is one where the price curve is moving exponentially. A 1:1 rise:run does not qualify.
Dispassionate - I suspect you are on the right track if you're pairing those questions.
