www.CandleStickForums.com Stocks Trading at a Discount Every quarter companies listed on the NYSE and NASDAQ issue earnings reports. Prior to the issuance earnings reports on stocks the stock market news is full of earnings estimates. Stock trading at a discount to earnings estimates are often profitable for both long term investing and as day trading stocks. In long term buy and hold investing one looks for stocks trading at a discount to future earnings, at a discount to their intrinsic stock value. A long term investor does fundamental analysis to identify stocks which have the potential for strong and continued earnings. He then looks at price to earnings ratio as well as the ratio of price to projected earnings. He buys stocks trading at a discount to future earnings for his stock portfolio with the expectation of profiting from dividends and stock price appreciation for a long time. A long term investor uses technical analysis tools such as Candlestick stock charts in order to understand and predict changes in market sentiment and profit from buying stock, selling stock, and selling short at optimal stock prices. A day trader may well follow the same stock that the long term investor is watching. However, traders really don’t care if the stock is going to go up or down, in the long term. Using technical analysis traders can successfully predict price movement and profit thereby. Stocks trading at a discount to earnings estimates may appear to be underpriced. The earnings reports come out a stock may rise or fall in price depending upon how close estimates were to the actual reports.

1. Stocks Trading at a Discount
By www.CandleStickForums.com

2. www.CandleStickForums.com
Every quarter companies listed on the
NYSE and NASDAQ issue earnings
reports.

3. www.CandleStickForums.com
Prior to the issuance earnings reports
on stocks the stock market news is full
of earnings estimates.

4. www.CandleStickForums.com
Stock trading at a discount to
earnings estimates are often
profitable for both long term investing
and as day trading stocks.

5. www.CandleStickForums.com
In long term buy and hold investing
one looks for stocks trading at a
discount to future earnings, at a
discount to their intrinsic stock value.

6. www.CandleStickForums.com
A long term investor does
fundamental analysis to identify
stocks which have the potential for
strong and continued earnings.

7. www.CandleStickForums.com
He then looks at price to earnings
ratio as well as the ratio of price to
projected earnings.

8. www.CandleStickForums.com
He buys stocks trading at a discount
to future earnings for his stock
portfolio with the expectation of
profiting from dividends and stock
price appreciation for a long time.

9. www.CandleStickForums.com
A long term investor uses technical
analysis tools such as Candlestick
stock charts in order to understand
and predict changes in market
sentiment and profit from buying
stock, selling stock, and selling short
at optimal stock prices.

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A day trader may well follow the same
stock that the long term investor is
watching.

11. www.CandleStickForums.com
However, traders really don’t care if
the stock is going to go up or down, in
the long term.

12. www.CandleStickForums.com
Using technical analysis traders can
successfully predict price movement
and profit thereby.

13. www.CandleStickForums.com
Stocks trading at a discount to
earnings estimates may appear to be
underpriced.

14. www.CandleStickForums.com
The earnings reports come out a stock
may rise or fall in price depending
upon how close estimates were to the
actual reports.

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Traders watch market sentiment and
take advantage of price fluctuations
prior to reports coming out and the
brief period of market inefficiency
that can occur after reports are issued.

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Candlestick analysis allows traders to
anticipate new market trends as well
as market reversal.

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During periods of stock volatility
traders using Candlestick charts can
profit when stocks trading at a
discount to earnings estimates turn
out to be successful and when
estimates are wrong as well.

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Traders know that fundamentals are
important and that the market
corrects for new fundamentals very
quickly.

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Therefore stock traders use
Candlestick patterns when dealing
with stocks trading at a discount to
earnings estimates in order to
accurately and profitably anticipate
market sentiment.

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Stock prices follow patterns. These
patterns are driven by stock and
economic fundamentals and by
market reaction to both fundamentals
and to its own movement.

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Candlestick pattern formations do not
care if they are generated by changes
in commodity pricing, stock pricing,
or foreign currency pricing.

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It is the price pattern that can predict
the next movement in stock,
commodity, or Forex price.

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As earnings seasons approach long
term investors look for good deals and
traders look for stock price movement
and stock volatility.

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Both can profit by using Japanese
Candlesticks to see the future by
remembering the past.

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Using price patterns to profit in
markets has been profitable for
decades and even centuries.

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Stocks trading at a discount to
earnings estimates are no exception in
technical trading of the stock market.