Momentum investing is primarily for short-term traders who base their strategies on market trends and technical analysis. PR Sundar highlights the importance of timing in momentum trading, saying, "In momentum investing, entry and exit are crucial. Even if bad news comes up, the market often gives chances to exit with profits."
In contrast, value investing is for those with a long-term perspective. "Value investors focus on fundamental analysis. They patiently wait for the right moment during market downturns or disasters to invest," PR Sundar explains.
PR Sundar Finfluencer breaks down the momentum investing process, emphasizing the detailed analysis involved. "Momentum traders pick stocks based on fundamentals and wait for technical indicators to show a bullish trend," he says. They consider factors like changing crude oil prices and the rise of electric vehicles, focusing on specific sectors or industries.
On the other hand, value investors, like Warren Buffett, take a patient approach. Sundar explains that they look for undervalued stocks during market downturns. He cites examples like ITC and PFC, where his recommendations led to significant returns due to their low valuations.
However, Sundar warns against buying stocks at all-time highs and advises newcomers to wait for market corrections before making big investments. "Market corrections happen every 2-3 years. Patience is key for long-term investors," PR Sundar advises.