low p/e stocks + 200 sma

jimmysnow · #1 05-26-2006, 06:39 PM

Do any value investers use a 200 day moving average to decide when to buy or sell? or any other indicators? I have read that using 200 sma with a trailing stop loss has a higher e.v then not. Wouldnt this lower your risk and boost your r.o.i.

Sniper · #2 05-26-2006, 09:32 PM

Using MAs and stop losses are Technical Analysis... "Value Investors" focus on Fundamentals.

jimmysnow · #3 05-26-2006, 10:19 PM

I am way past that. I am asking if you use Benjamin Graham's net current asset value strategy to pick a stock. Then use a simple trend following 200 MA to know when to buy or sell. Would this approach boost the return then say buy and hold approach.

Sniper · #4 05-26-2006, 11:49 PM

If you are looking to mix Technical and Fundamental analysis, you can start by looking at William O'neill's "How to Make Money in Stocks" and IBD.

I can tell you that stocks make the majority of their gains when they are above their 200 day moving average, by definition [img]/images/graemlins/wink.gif[/img]