30-11-2023, 12:19 PM
While often used interchangeably, there are differences between trading and investing. Firstly, they have different goals.
But there have been successful traders who incorporate fundamentals into their trading analysis
I would like to offer the ROE trend vs the share price trend as one toolkit for the traders.
The chart for JTiasa below is one example.
![[Image: JTiasa.png]](https://i.postimg.cc/pdcWr2fH/JTiasa.png)
While this is classified as under the Bursa Plantation sector, its ROE is worst than my 2 reference companies – BPlant and KLK. So I would not hunt here to look for long-term investment opportunity from a fundamental perspective.
But if you are a stock trader, wouldn’t you consider a rising ROE without a corresponding uptrend in price yet a trading opportunity?
- Traders focus on generating short-term profits by taking advantage of price fluctuations
- Investors aim to build wealth over the long term by investing in fundamentally sound assets.
But there have been successful traders who incorporate fundamentals into their trading analysis
I would like to offer the ROE trend vs the share price trend as one toolkit for the traders.
The chart for JTiasa below is one example.
![[Image: JTiasa.png]](https://i.postimg.cc/pdcWr2fH/JTiasa.png)
While this is classified as under the Bursa Plantation sector, its ROE is worst than my 2 reference companies – BPlant and KLK. So I would not hunt here to look for long-term investment opportunity from a fundamental perspective.
But if you are a stock trader, wouldn’t you consider a rising ROE without a corresponding uptrend in price yet a trading opportunity?