About Me
- jc
- Interested in saving and investing for financial freedom. Mid to late career IT worker with 20+ years in the state retirement system seeking alternate income through dividend growth investments. Final goal is to pass it down to my children and that they do the same for their children-a continuing generational wealth transfer.
Sunday, October 21, 2012
Valuation
Another technique used in valuation is the chart-my weakest area. Supposedly if the 200 day moving average and the 50 day moving average are both above the current stock price, this is a favorable buy condition. Its just one condition though. If another is that the earnings are about to disappear because the company manufactures pet rocks, then it doesn't matter about the moving averages-don't buy! As with any stock purchase decision, research is most important and money is made or lost on the buy side more than the sell side.
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