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Revision History For: Lessons Learned

12 Jul 2017 07:47 PM <--
01 Jan 1998 03:19 PM

Return to Lessons Learned
 
This thread is intended to provide a clearinghouse for your afterthoughts about how you might have done it better..

Areas for discussion are Investments, Stock Trading or just anything you may have gained from your experiences that could help someone else avoid that mistake or prosper from your hindsight.


Here is the most important Lesson Learned or insight I have gained in my years of Investing and Trading in the stock market.

The markets valuation of a stock is based on the following factors

70 % of the stock's price is based on the movement of the overall stock market.

20 % of the stock's price is based on the sector or industry the stock is in.

10 % of the stock's price is based on the actual quality of the stock itself.

So what does this mean?. In most cases the overall movement of the market and that of the sector/industry the stock is in, has more influence on the stock's price than anything else.

Once you truly understand this relationship your investing and trading will prosper.

Don Green

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