Baredo's law (also called 28 laws) is also translated as "Pareto's law" in some places.It was discovered by Italian economist Baredo (Pareto) at the end of the 19th century and the beginning of the 20th century.What does he mean? Let's have a look.
He believed that in any group, the most important things only accounted for a small part of them, about 20%, and the remaining 80%, although the majority, was secondary, so it was also known as the 28 Law.
The most popular saying is: "80% of revenue comes from 20% of customers." Also known as the 20/80 rule.
In the stock market, the "two eight" phenomenon is that 20% of the stocks are up, and 80% of the stocks are down or not up.
80% of the investors in the stock market only think about how to make money, and only 20% of the investors consider the contingency strategy when losing money. But the result is that only those 20% investors can make long-term profits, while 80% investors often lose money.
20% of the people who make money have mastered 80% of the correct and valuable information in the market, while 80% of the people who lose money have not collected information carefully for various reasons, but only mastered 20% of the information through stock reviews or television.
When 80% people are optimistic about the future market, the stock market is close to the short-term head. When 80% people are bearish about the future market, the stock market is close to the short-term bottom. Only 20% of the people can reach the bottom and escape the top, and 80% of the people buy and sell when the stock price is halfway up.
80% of the commission of securities companies comes from 20% of the transactions of short-term customers, while 80% of the income of shareholders comes from 20% of the number of transactions. Therefore, unless you have skilled short-term investment skills, do not rashly participate in short-term trading.
The index stocks, which account for only 20% of the market, play an 80% role in the rise and fall of the index. When judging the trend of the market, pay close attention to the performance of these index stocks.
Only 20% of the stocks in a round of market can become a dark horse, and 80% of the stocks will fluctuate with the market. 80% of investors will miss out on the dark horse, but only 20% of investors have a one-sided relationship with the dark horse, and few can really ride the dark horse.
80% of the investment profit comes from 20% of the investment stocks, and the remaining 20% comes from 80% of the investment stocks. 80% of the investment income comes from 20% transactions, and the remaining 80% transactions can only bring 20% profits. Therefore, investors need to use 80% of their capital and energy to focus on the most critical 20% of investment stocks and 20% of transactions.
In the stock market, 20% of the institutions and large investors account for 80% of the mainstream funds, and 80% of the retail investors account for 20% of the funds. Therefore, only by grasping the trend of the mainstream funds can investors make steady profits.
Successful investors spend 80% of their time studying and 20% of their time actually operating. Failed investors spend 80% of their time on firm offer and 20% of their time on regret.
The stock price is in quantitative change for 80% of the time, and qualitative change for only 20% of the time. Successful investors spend 20% of their time in the process of qualitative change of stock prices, and 80% of their time in the rest. unsuccessful investors spend 80% of their time in the process of quantitative change of stock prices, and 20% of their time in the rest.
