I love to read how value investor has been trapped in highest price on their initial price? Why? Because value investor only looking for cheap PER, cheap PBV, low/average DER, cheap PSR. NPM, ROE on their second bases.
That’s not enough! Why? Because value investing is also looking for really cheap/discounted price with almost -50% correction from their stable (mean) price. Remember as value investor, we are also become contrarian investor, we buy when others sell.
Once you find those undervalue equities, what else should we look for? Is it a bottom enough? Is it under MA200, is it under MA60, is it under MA20? I’m always enter when it’s under MA200, remember under MA200. Because one it’s breakout MA200, smart money/big funds is entered.
So let’s enjoy the ride of undervalue equity. As simple as that as value investor
