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Welcome to the Investing Section of Options Realm |
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Value Investing is a somewhat interesting term used to describe long term investing. I say the term is interesting because if you are investing you are buying something you believe has value otherwise it is considered speculating. I believe that this term has come from the misunderstanding of what Investing really is and the difference between Investing and Speculating.
Many people think that when they put money into the stock market then are "investing" when in most cases this is not true. When you invest you put money into something you believe to be of fair value and will give you a return on this investment over the next few years. People who buy and trade stocks in an active manner are not investors but speculators. Understanding this is a key to asset growth. I am not saying that speculation is a bad thing I just believe that one should realize that they are speculating and not investing. Investors buy the companies because they like the fundamentals of a company and look at the purchase as they are part owners. A trader buys a company because they speculate the value of the company is going to appreciate in the eye's of other speculators.
The next question that is probably being considered now is what method works better and the answer to that question is that it depends on what the person likes and wants to do. Both can be extremely profitable if done right and with the right attitudes. If you liked this article you can click here for a response to if from James Cullen the Owner of Jelly Roll Capital Equity Research |
