Value Trading

When the value of a stock drops substantially as a result of competition, bad management, economical slow down, etc, value investors who are looking for a fundamentally strong company with a low intrinsic value become attracted to the company. If you can notice the buying pressure coming in, that would certainly be a very good point to buy the stock since momentum traders, and other types of traders are going to come in afterwards and push the price higher. You simply might have detected a bottom for the stock.

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