Why "value investing" is really trading, and why I love investing
A lot of people have a negative connotation of trading. I am not sure why, because unless you are an investment banker taking a company public, whether or not your style is "trading" or "investing", you are adding no more value than the other. If you find trading more profitable, trade. If you find investing more profitable, invest. Investing has the tax benefits, but some people make a lot of money trading. I do both, but I enjoy the trading more.
However, I don't understand how "value investing" is really investing. You are buying a company because you think it is cheap, and you are selling it when it becomnes expensive. The company could be a piece of crap and still be a "value". An investment is more of a belief about a company continuing to prosper. The price ratios shouldn't be as important, as long as its not ridiculously expensive. As Buffett said, its better to buy a good company at a fair price than a fair company at a good price. Value investing is not seen as trading because of its time frame...but who said trades cant be long term?
Also, one of the reasons I want to do this for a living (trading/investing) one day (hopefully sooner than later) is because it forces me to learn about everything. I need to know how everything has an effect on everything so I undestand the price action, and so I can find undervalued sectors. I spend most of my free time reading while my roomates get drunk (I can still party hard though) and no other profession really has this kind of advantage.