"Buy low Sell high".. aiyar.. who don't know this theory... but this is easier say than done. Before you start trading, better do your homework first.
To accurately determine a stock's value, you cannot look at the stock in isolation. You need to look at other factors, such as how stocks in the same market are faring. You also need to be aware of how the overall market is faring. Simple e.g. the stock gain by 5%, but the overall market gain by 10%. Who's the winner? And vice versa when we talk about losses.
To accurately determine a stock's value, you cannot look at the stock in isolation. You need to look at other factors, such as how stocks in the same market are faring. You also need to be aware of how the overall market is faring. Simple e.g. the stock gain by 5%, but the overall market gain by 10%. Who's the winner? And vice versa when we talk about losses.
Two valuation measures commonly used for comparatively purposes are a stock's price-to-earning (PE) ratio and its price-to-book (PB) ratio. Read abt it in details.
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