Let us keep stock Markets away for now and take some of the real world scenarios, where we can apply Value based buying and selling in our daily life.

The Great Real estate Market

When someone plan to buy a Plot in an venture , Let us see how an Smart Person makes the decision, by applying the Value based trading rules

1. He verifies the venture launch date and the Initial prices during launch
2. If the Venture is Launched 5 years ago, Then the Change in price of the Plots needs to be noticed.
3. During these 5 years, the plot location might had a lot of changes, ex: A news on Commercial Hub near the venture , this can trigger the prices drastically up.
4. He will Analyse the prices over last 2 years, 1 year and 6 Months
5. If the prices have an Organic growth along with the location and city, that means the Value of the PLOT have shifted.
6. If there was no growth in the location or City, the Price of the plot will not grow and the Value shifting will not happen.

The above points can help us to take the decision better and understand the real price of the Plot. Based on this information you will understand the real value and the growth prospect.

You can apply the same concept in STOCK Markets, and understanding the Longer Time Value Location is more important to make a Trading/Investing decision today.

Ex: I am quoting BankNifty Value Shift during various phases

Comment: As mentioned in the above example, you can see the value shift during various times.

On a Reconstructed BankNifty the Value has been shifted from 27000 to 29700, this is classic example on value shifting.