While often used interchangeably, there are differences between trading and investing. Firstly, they have different goals.
• 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 example for JTiasa below is one example.
While this is classified as under theBursa 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?
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