@Porwest
more from that month
When it comes to stock prices, it should always be noted that a dollar amount does not determine whether or not a stock is cheap or expensive. A stock could be selling for $1000 and be cheap, while another stock in the same peer group could be selling for $5 and be expensive. While there are many factors that determine whether a stock is cheap or expensive, one measure is the price to earnings ratio (P/E). If Stock A is $1000 per share but is trading with a P/E ratio of 12 compared to Stock B trading with a P/E ratio of 20, the $5 stock is more expensive than the $1000 stock. Again, there are other factors to consider. But the P/E is a first glance. I can go into further details in a later post, but the main thing here I am pointing out is that price is not immediately representative of value.
34 comments
Always your information is good for everyone and thanks to you for the sharing
I want to thank you because your posts help me as a beginner I think I will learn soon
Thank you. That is all I ever aim to do...if I can help just one person to know a little bit more about the stock market, it makes me happy. 😉
🤗😘😘😘😘
Thank you for your kindness
I always appreciate the good information that you give.
Thanks. I do appreciate that.
So how much are you been paid for the the 1000 if the P/E is 12 And the $5 is 20?
Not sure what you mean.
Man, you see what happened, today in the news?
A lot of things happened in the news today. What story are you pointing to?
Powell's news.
About the interest rates? If it is that, we have known about that for months.
I mean what it did to the market.
Not sure how you mean. It was not a particularly bad day for the markets.
It created a momentum on the us dollar index, even on Gold
That is primarily because higher interest rates signal strength in the currency, and of course since precious metals are a hedge against a deflating dollar, they will go down when the dollar goes up. Just my two cents.
Yeah, but it wouldn't actually change the direction but just create a momentum. Right?
I am not sure how you mean. Momentum is simply movement. In other words, momentum can be downward or upward, forwards or backwards. Momentum is usually used in positive terms when it comes to financial things. But all it means is something is moving in one direction or another. As for the dollar in general, people invested in it were waiting to see a signal that it had strength, so if the Fed signaled that, it makes sense that's what investors took it as and people bet in favor of it while betting against the precious metals that are usually hedged against it.
I said the news made gold create a momentum downwards and the us dollar index upwards.
But you also said, "but it wouldn't actually change the direction but just create a momentum." Which was why I was confused.
Okay. What I meant was that if the market was in an uptrend and the news came in and creates a momentum downwards, that the momentum created would not change the markets initial uptrends move it has been on, rather just some noisy momentum before the continuation in its direction.
But the markets, any market, are fluid by nature. They ebb and flow, they constrict and dilate, they contract and expand. Many things influence direction and momentum. The key to sound investment is understanding fully the value of the underlying investment, getting past the noise, and interpreting what the shorts are basing their short term decisions on and what the longs know that the shorts don't. If any of that makes any sense.
Man!!! My head hurts.
You are welcome. But of course these are tenets of investing. lol
Seriously, my head hurts.
But if you don't digest this information, surely you will lose money or not make as much as you otherwise might. Take my word for it. These are basic concepts. lol
You don't understand do you. My head is hurting me like a headache Im not really feeling ok. I lost cash.
Well, why not just say that instead of making it seem like you were saying your head hurt from confusion? lol You speak in riddles a lot. What gives?
I tried swapping bch to usdt after analysing my chart and saw that it'll still dip in the process of doing that, I found out I can't swap huge amounts rather small amounts i tried swapping the small amounts multiple times as in the end it didn't amount to the actually amount I swapped. The swap failed to process 35% of my funds. I've literally been thinking about how glitchy that system was and what if I wanna swap back? Wouldn't it still give another headache
Are you sure there were not gas fees attached to the swap?
There was, but I paid I did the swap on bitcoin.com
Forget about it, I got it all figured out.
I really enjoyed reading your post. I understood a lot. In this way, today's market has also increased a bit. Hopefully there will be more growth.