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Pareto’s Principle applicability to stock market

Posted By On 9/29/2008 02:29:00 AM Under
1. One must undertake the effort in stock market but should also keep the Pareto’s Principle in mind which can be also called as 80/20 Rule.

2. In 1895, Italian economist Vilfredo Pareto found that eighty percent of all the land was owned by only twenty percent of the population.

3. The same is applicable for making money from stock market where we undertake 80% of our effort to make 20% of money and 20% of effort to make 80% money and the moral of this whole story is to let the profit making strategy keep running and make best from it rather than sulking for a loss.

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