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Value Buyer
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Style
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- "Buys at a Discount," trying to be early, and "Buy Low."
- "Bottom-fishers" want stocks which are sound but have "over-corrected."
- Wants strong fundamental performance, but weak stock price performance, i.e. "value."
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Goal
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- "Buy early" before a secular or cyclical move occurs.
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Risk
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- Being too early, and losing money before the turn occurs.
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Momentum Buyer
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Style
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- Knows "The Trend is your Friend"
- Buys stocks which "are working," but priced at a discount to the peer group
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Goal
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- Buy midway into a secular or cyclical move.
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Risk
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- You are late, and make the top. The seller knows more than you do
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Contrarian Seller
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Style
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- Sell what's "Working" at or near the peak. Trying to "Sell High."
- Sell the "Darlings," stocks trading at a premium, yet growth is slowing
- You are trying to be early, and sell while Wall Street is still positive
- You know the next opinion change is a down tick, or you think the stock is priced out of line, at an undue premium to the peer group.
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Risk
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- You are too early, and could have sold higher later.
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Consolation
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- Do something else with the money, you do have choices
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Momentum Seller
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Style
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- Sell what's "not working" and "Cut Your Losses."
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Risk
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- It will start working after you sell.
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Consolation
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