The foremost strength of the stock market is its unpredictable multi-fold growth.
The biggest strength of the stock market is its unprecedented multi-fold growth.
Similarly, collapse can be fatal. If you want to multiply your money then you should be able to withstand 100% loss. No other investment is as profitable as stock. Asian Paint has yielded 3000 times since its issue. Can you imagine this kind of profit in any other investment?
What are the rules to get large scale gains in stock trading
Here are some rules to follow.
Change your perspective
Taking some profit does not mean that you are creating wealth. Wealth Creation refers to the multi-fold growth of your one-time investment, with which you can live the rest of your life in peace. Your objective should not be to extract a certain percentage of profit. You should pay attention to how often your investment is increasing compared to the growth of the market.
Intraday trading can cause loss or gain of several thousand in a day. With this gain and loss incidents, no one can generate wealth. Intraday dealing can only give outsiders the impression that you are active in the stock market. Generating wealth is not your way.
It is not possible to know everything before shares or trading. In fact, there is no one who knows everything about the stock market. When you feel happy about a booming market, you should be able to accept the downfall faced with a bearish market.
Investment is not a hobby
Do not consider investing as a hobby. A hobby is something that you do when you are relaxed and have free time. But when you want to increase your investment manifold then you must be very careful and cautious and hence it cannot be done as a hobby.
Never think it's okay to lose
If you have this attitude, you will never pay enough attention to your investment. It can also turn into the reason behind all its losses. Considering 10% or 20% profit, think of making 10 times or 20 times money. Patience and dedication are important for achieving such goals.
Do not trust gold
Gold and FD are not good options for making money. Equity investment is best for getting multi-fold returns in a gold short period. Gold and FD are best suited for retirees and senior citizens.
Safety before profit
Investing in the stock market is like fighting your enemy in a war zone. The soldiers protect themselves before attacking. Similarly keeping your money safe is very important in investing.
A generation in the stock market has shrunk for 3 years now. If you are investing for a period of 5 - 7 years, then the investment should stand out for generations. To get multi-fold returns over that period, say 10 times, you should expect to show at least 35% growth per year. Stocks that are suitable for long-term investments account for only 15% of the entire stock. These will not be available at a lower price like Rs. 10 or Rs. 20. You should be able to pay more to grab such great shares. Investing in already performing companies will provide some degree of security assurance.
Know about companies
To predict the long-term performance of the company, you should thoroughly analyze the financial parameters like market capital, profit, earnings per share, etc. and see how it has improved over the years. If it shows steady growth, the stock trend is likely to continue
Focus on low stock
Your portfolio should have fewer stocks, say 6-8. It is a huge task to constantly monitor and manage these. If you have 40 stocks, it would be like having 40 children at home. You cannot track which child you fed and whom you ate The same logic applies in your portfolio.
Go to sector leaders
It is always a sensible approach to invest in sector leaders. This is clearly a positive trend. In an effort to do this, we are finally stuck with poor companies. Therefore, go with the trend and buy the top-performing stocks. If leading companies show poor or flat performance, this may be a sign of a change in trend. You should be careful at this point and decide to book profits if needed.
Also, it is better to avoid steel and coal stocks. There is very large government participation in them and you cannot guess how the policy of the government will change at any time. These are not good candidates for wealth creation.
Never take a loan
Taking a loan to invest in shares is a big risk. You can eliminate a huge loss compared to your capital. So, never take a loan for your stock market investment.
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| Which are the Rules to Gain Massive Profits in Stock Trading |
The biggest strength of the stock market is its unprecedented multi-fold growth.
Similarly, collapse can be fatal. If you want to multiply your money then you should be able to withstand 100% loss. No other investment is as profitable as stock. Asian Paint has yielded 3000 times since its issue. Can you imagine this kind of profit in any other investment?
What are the rules to get large scale gains in stock trading
Here are some rules to follow.
Change your perspective
Taking some profit does not mean that you are creating wealth. Wealth Creation refers to the multi-fold growth of your one-time investment, with which you can live the rest of your life in peace. Your objective should not be to extract a certain percentage of profit. You should pay attention to how often your investment is increasing compared to the growth of the market.
Intraday trading can cause loss or gain of several thousand in a day. With this gain and loss incidents, no one can generate wealth. Intraday dealing can only give outsiders the impression that you are active in the stock market. Generating wealth is not your way.
It is not possible to know everything before shares or trading. In fact, there is no one who knows everything about the stock market. When you feel happy about a booming market, you should be able to accept the downfall faced with a bearish market.
Investment is not a hobby
Do not consider investing as a hobby. A hobby is something that you do when you are relaxed and have free time. But when you want to increase your investment manifold then you must be very careful and cautious and hence it cannot be done as a hobby.
Never think it's okay to lose
If you have this attitude, you will never pay enough attention to your investment. It can also turn into the reason behind all its losses. Considering 10% or 20% profit, think of making 10 times or 20 times money. Patience and dedication are important for achieving such goals.
Do not trust gold
Gold and FD are not good options for making money. Equity investment is best for getting multi-fold returns in a gold short period. Gold and FD are best suited for retirees and senior citizens.
Safety before profit
Investing in the stock market is like fighting your enemy in a war zone. The soldiers protect themselves before attacking. Similarly keeping your money safe is very important in investing.
A generation in the stock market has shrunk for 3 years now. If you are investing for a period of 5 - 7 years, then the investment should stand out for generations. To get multi-fold returns over that period, say 10 times, you should expect to show at least 35% growth per year. Stocks that are suitable for long-term investments account for only 15% of the entire stock. These will not be available at a lower price like Rs. 10 or Rs. 20. You should be able to pay more to grab such great shares. Investing in already performing companies will provide some degree of security assurance.
Know about companies
To predict the long-term performance of the company, you should thoroughly analyze the financial parameters like market capital, profit, earnings per share, etc. and see how it has improved over the years. If it shows steady growth, the stock trend is likely to continue
Focus on low stock
Your portfolio should have fewer stocks, say 6-8. It is a huge task to constantly monitor and manage these. If you have 40 stocks, it would be like having 40 children at home. You cannot track which child you fed and whom you ate The same logic applies in your portfolio.
Go to sector leaders
It is always a sensible approach to invest in sector leaders. This is clearly a positive trend. In an effort to do this, we are finally stuck with poor companies. Therefore, go with the trend and buy the top-performing stocks. If leading companies show poor or flat performance, this may be a sign of a change in trend. You should be careful at this point and decide to book profits if needed.
Also, it is better to avoid steel and coal stocks. There is very large government participation in them and you cannot guess how the policy of the government will change at any time. These are not good candidates for wealth creation.
Never take a loan
Taking a loan to invest in shares is a big risk. You can eliminate a huge loss compared to your capital. So, never take a loan for your stock market investment.
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