There are many indicators to show if a company is worth buying in the market.
Fundamental people may use ROE, PE, earning growth, NTA and so on.
Technical analysis people may use candle chart, volume, theme and others.
I was used to ROE, PE before. But now I will include another indicator that is insider movement, which is share buy back by its own company or director buy the shares themselves.
Normally, company execute share buy back is to support company share price and no much emotion inside. But if the directors start to buy up the company shares, then it shows he/she is very confidence in this company future and he is ready to growth with this company. Human is born to be greedy. He/she knows something is worth in the company and he/she wants more from the company so he/she buy the company shares.
for TA, i believe divergence is the best tool to determine early sign of trend
ReplyDeleteGood morning kelhome,
ReplyDeleteYes, I also agree divergence is one of the signal, but no matter how you still need some fundamental to back up~
In investment world, there is no right or wrong, everybody has their own method, as long as the method can deliver result, then we stick to it.. :p