The factors that affect the relationship between supply and demand include people's expectation of the company's profit, artificial speculation by large households, market capital and policy factors. Value investment depends on whether investors think a stock is undervalued or overvalued, or whether the whole market is undervalued or overvalued.
The simplest method is to compare the price-earnings ratio, dividend and yield index of a company with the average level of competitors in the same industry and the whole market.
Extended data:
Factors affecting the rise and fall of stocks
1, main funds in and out
The influence of main funds on a stock is very important, because the entry and exit of main funds directly affect the supply and demand of stocks, thus playing an important role in stocks. Any stock with excellent performance will be "no use" without the exploration and care of the main funds. On the contrary, some loss-making ST shares, driven by the main funds, have a continuous upward trend. Visible, the importance of the main funds.
2. Major changes in the fundamentals of individual stocks
The quality of a stock's fundamentals determines its value to a considerable extent.
When the fundamentals of individual stocks are significantly negative, the stock price will generally fall. When the fundamentals of individual stocks are significantly improved, the stock price will generally rise.
Under special circumstances, and at a high level, the dealer issued a favorable response to the shipment, so the stock price will fall. At that time, its main function was the outflow of main capital, which led to the decline of stock price.
Therefore, the changes in the fundamentals of individual stocks or the specific impact of the news of individual stocks on the stock price must also be carefully analyzed in combination with the technical position of individual stocks to avoid being fooled by false news.
3. Historical trend of individual stocks.
The historical trend of a stock will also have a great influence on its future trend.
Let's make a simple analogy: individual stocks are at a relatively high level after rising for a period of time (historical trend). At this point, the motivation for individual stocks to rise will be significantly weakened and the risk will gradually increase. Therefore, the rise during this period (historical trend) has an impact on the future trend of stocks, which is manifested in the increase of risks.
Baidu encyclopedia-stock ups and downs