Choose The Right Time To Buy Stocks.

The lower the quality of investment is, the higher the risk is. The poor investment people get poor results.

The timing of investment is just as important as the quality of investment. If you buy Microsoft Corp at the right time, you will make money, so timing is very important. Don't believe what others say is not important.

One problem with finding good investment targets and choosing the right time is that there are some subtle differences in this way. We can set some rules for such things in some degree, and even draw out rules and strategies, but this kind of thing is partly science and partly art.

In other words, it involves judgment, but is our daily life and what we do is not all about judgement?

Yes, but judging from a sound foundation is better than not knowing what to do.

Finally, the amount of investment will determine the level of risk.

If you buy a Microsoft, even if you buy it at a high price, you will probably be able to bear the pain of falling share prices.

But if you invest all your savings in life, the situation is quite different. Therefore, we need to discuss fund management, so that you can decide how much you should invest in any particular investment, or how much savings you should spend on your specific investments.

In this way, you can lead the risk, rather than let the risk drag you away.

All this is good news, investors can.

7 traditional methods of measuring value

Analysts usually use 7 methods to measure the fundamentals of stocks and possible future rewards.

1, the ratio of earnings to earnings

The most commonly used method of measuring value is the ratio of earnings to earnings, which is derived from the current stock price divided by the current surplus. The higher the figure, the higher the cost of investors in exchange for company surplus.

Therefore, Gao Ben Yi Bi said that prices can hardly rise again.

Analysts have always said that the lower the PE ratio, the better the future market volatility.

2. Net price ratio

From the current share price divided by the net value per share, the net price ratio is low, representing the price paid by the investor to buy shares, which is close to the value of the liquidation of the company assets.

The lower the ratio, the better outlook for the stock market.

3, price cash flow ratio

The total market value of a stock is divided by the company's cash flow.

Analysts who like this pointer point out that dirty people and accounting skills can manipulate the surplus, and it is much harder to manipulate the overall cash flow.

When you look at this pointer, you still need to look at the lower figures. Generally speaking, the stock market should have a better performance in the future.

4, price to sales ratio

It is a relatively new practice to use price to sell than to assess value. Price selling is similar to that of the ratio, but it takes stock price compared with total sales, rather than the surplus, the price is higher than the surplus, usually it is adverse to the stock price, and the lower price is usually beneficial to the stock price.

5, share interest rate

6. Return on equity

The rate of return on equity is a value indicator that has been used for many years. It is a percentage obtained from pure interest (excluding all expenses, excluding dividends) divided by shares and multiplied by 100.

The higher the number, the better.

7, relatively strong and weak

At last, this pointer is widely adopted by fund managers.

It was first popular in 1960s, when many analysts said that the relative price performance of a stock was predicted when compared with the other stock.

This pointer is called a relatively strong and weak pointer. It usually takes the price changes of all stocks today compared with a year ago.

It is generally believed that stocks with relatively high strength and rising stocks will continue to rise.

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Now we turn our attention to these value indicators. Each pointer helps us to choose the stocks that are most likely to rise. The more you know about these technologies, the more you can use them in investment decisions.

In seventeenth Century, philosopher Descartes said, "I think, therefore I am", which is probably the basis of this philosophy.

He obviously lives on gambling. Besides thinking about the meaning of life, he also leaves a famous saying about speculators: "people who discover truth are likely to be just a few, not many."

In the words of traders, what he said means: "when most people find that the trend is upward, the trend is likely to change."

A truth related to market pactions: in most cases, you can ignore the opinions of ignorant investors or most people.

Basic rules

The first rule is that too much or too much empty space is usually the time for market reversal.

100 years ago, Hera Grete J (Heraclitus) said: every trend must be over developed, causing the trend to reverse itself.

Overlooking and overlooking regions, most of them are able to make profits after entering the field.

This is indeed a normal phenomenon, not a special case.

More than 75% of investment advisers overlook for a long time and share prices may fall rather than rise in the next few weeks.

Similarly, when the optimistic investment adviser is below 25%, the chance of market rise will increase greatly.

Indeed, in the past 4 years, the most profitable gains have been reduced to 25% below the popularity index.

The second law of thermodynamics tells us that everything is usually from a state of order to a state of inorder, and the state of disorder is always more serious.

A downward trend of all orders and common prospects is actually another extreme, which is the increase of disorder at the end of the trend reversal.