As the title says, when you are about to invest long/medium term into a company, which kind of parameters do you look at (beside the fundamentals)

P/ E ratio?

P/ Revenue?

Can you help a noob please?

What makes a stock, a ''value stock'' (beside fundamental analysis)

  • The fundamentals are what make a "value stock". Everything else is noise when you're investing for the long term. – cHao Jun 7 '18 at 22:03
  • Expense ratio. I've pretty much stopped trying to pick individual stocks and only invest in ETFs now. – Kevin Jun 8 '18 at 0:14

The parameters used to determine if a stock is a 'value stock' is based on fundamental analysis. The problem with fundamental analysis is that it is based on assumptions which are usually biased. So at best fundamental analysis is a guesstimate.

Technical analysis, on the other hand, is based on actual data. Yes a lot of indicators can be played around with to suit someone's biased views, however, pure price action is based solely on actual price data and is in no way biased.

Using price action you can trade in the direction of the trend and you can decide to trade for the short, medium or longer term, with major trends lasting from a few months to years.

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    Unfortunately, like any other method, technical analysis is a guesstimate too. :) It's rooted in the assumption that past performance predicts future performance, which i hope any seasoned investor knows isn't necessarily the case. – cHao Jun 8 '18 at 14:41
  • That is in fact untrue. Technical analysis is more about statistics and probably and psychology than predicting anything. Take a trend, there is a definition for an uptrend and a definition for a downtrend. If you apply these definitions to enter and exit trades there is no bias involved, no assumptions and no guessing - it is based on real data which anyone can apply. – Victor Jun 9 '18 at 5:40
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    Keep telling yourself that if you want. But there's inherently no objective definition for an uptrend or downtrend, and there inherently can't be. Prices are always wiggling around. They can even wiggle downward in an uptrend, or upward in a downtrend. To get meaning out of it, at some point you have to say these wiggles matter and those wiggles don't. But that right there is the very heart of subjectivity and bias. On a different scale, and/or at a different level of detail, those wiggles do matter, and these are noise. And on the longest timelines, it's basically all noise. – cHao Jun 9 '18 at 13:06
  • The definition of an uptrend is a movement upwards with higher highs and higher lows, that is - a new higher price higher than the previous high and a higher low or trough which is higher than the previous trough. The definition of a downtrend is lower lows and lower highs. You can google the definition of trends to get a more detailed explanation. These are based on actual price data and thus in no way subjective or biased. – Victor Jun 10 '18 at 0:26
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    And now you need a definition for "highs" and "lows" that gives you a consistent number. Otherwise, it and anything derived from it is by definition not objective; it depends utterly on POV. When you're looking at daily highs or weekly highs or yearly highs, you get different numbers. You can look on two different scales and see a downtrend and an uptrend at the same time. That's an issue if you want to claim objectivity. – cHao Jun 10 '18 at 1:47

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