What is The Best Short Term Investment Strategy ?
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Compounding your money from stock market investment is a good idea and I believe it is the best wealth creator in the world ever. If you have a little knowledge about technical and fundamental analysis of stocks, then you can do swing trading and here no need to hire any third person or third party for your own investment. Just you need to give some time (one or two hours) each and everyday in the evening.
And you don’t have time to do your own experiment and research, it will be better tobecause they will do your experiment and research to keep your money safe. But keep in mind there is also a risk in mutual fund and nobody will guarantee you to give a sure fixed return at the end of the term, because it is related to market risk and they will tell you that you are investing your money at your own risk, they will just help you, they will not take 100% responsibility for your money if the market performs below or goes to crash. Then you will be affected nobody will take your responsibility.
So my suggestion is, please give some time to study and learn this great stock business, so be your own boss. Try to learn how the market is actually working. Obviously it will take time to make you an investment expert or value investor. Here one thing is clear that if you start studying and learning this stock market business, you will become a genius investor / brilliant businessman and beside that you will be able to make huge money in your life. If you have money then you can help others also who need it and it is very important to build our nation strong and healthy.
If you want to learn to make money from thisI will show you the way. Normally I believe in swing trading most. So let me discuss my strategy to make money from this market with very very low risk:
- Considering that I want to start my investing Rs. 100000 in Indian stock market.
- At first we have to divide this Rs.100000 in five equal parts that is Rs. 20000.
- Now we have to make a list of stocks which are already trading at their 52 week low price level.
- Among these stocks we should choose some stocks which have very good potential to give return and they are the leader in their field. keep in mind there will be no bad news and bad management issues of these companies.
- Now using our own technical and fundamental analysis we have to make a short list of these stocks finally. We will take only the best five stocks in our portfolio.
- Now this is the time to watch an enjoy the market’s and these five listed stock’s behaviour and movement.
- When you feel that the stocks are trading at a very reasonable low buying price level in these stocks. You should invest only Rs. 20000 for each stocks. You can buy one stock for Rs. 10000 first time and if market goes down around three percent or more than that you can invest in that stock for another Rs. 10000 second time. In this way you can buy all these five stocks using your Rs. 100000.
- Now this the time to hold these five stocks. Our target should be very minimum that is only 5%. If any stock reach our target we will sell it and we will book our 5% profit. Then we have to find another one stock to invest this Rs.21000 (Rs. 20000 + Rs. 1000 profit) using above strategies. In this way we should continue.
- If you use this strategy for your swing trading, it is beyond your thought how much money you can make using your only Rs. 100000. Normally it will take 4.5 to 5 years to make Rs. 1 cr.
(According to my experiences, theories, experiments and research along with mathematical calculation in the best possible way. I am moving ahead with this strategy and I am making money continuously, my target is always around 10%. I am suggesting you only 5% because you are new or started learning this business, as you grow older you can increase your target but don’t be so greedy).
10. Believe me, this is the best strategy ever to make money consistently.
I hope this will help you to understand how to invest in stock market for short term period with minimizing your risk .
Happy Trading & Investing ! [table id=1 /]