It’s easy to get caught up in stock prices as they move up and down, especially when there are large swings. However, focusing on share prices can actually be hazardous to your portfolio’s health if you end up overtrading due to emotion.
Here’s why you should ignore share prices and focus on other things that are more telling.
Why share prices don’t tell you much
The share price doesn’t tell you much in terms of what value you’re getting for what you are paying. Adding the price-to-earnings ratio (P/E) to the picture makes it clearer. Read More…