Working and dealing in stock market industry for a Decade it is my bottom sip concern to protect the investment of people they put across trusting their investment advisor.
Over countless strategies it is obvious that one method will work and one method will not work to the another. So, precisely it is you who do trade and you need to have a method which suits and works you best.
Here, the focus of this article is to share not the secrets of investment but the secrets of Protected investment. So, lets understand few factors concerned to protection of investment.
Many understand as; placing BUY and SALE orders completes the learning of Trading, I am afraid you may be wrong, a real trader does lot of possibilities Math and then apply A logic/strategy and put his BUY order, however he would also place his SELL order too. Key parameters are here for you.
- Invest always in debt free companies
- Put these chosen companies to your watchlist for few days, see their movements and understand the behavior of the same.
- Invest in those companies which move minimum 2Rs to 3Rs in a day
- Invest in partial investment method, means split your 100Rs to 3 to 4 parts and invest in one company 3 to 4 times piece by piece. Never to put all funds at once.
- Remember the strategy of investment you following to be strictly followed every time to every company you pick.
- Volume of the shares present in the company must be decent in compared to LTP value
- Remember you are going to trade only 100Rs out of 400Rs you have in your bank account, remaining 300Rs is to secure the failure, averaging, exiting during Bearish to Bullish movement.
- If you find you are left with 1000Rs then you are not/never going to divide it to 4 pieces as 250Rs and then 4 steps of investment, very bad it is. Your strategy must be always Capital/100=X/4. What ever the capital you have; you are going to break it into your strategy volume price only.
- How long should I hold is the next question, hold for 100% returns? Or 50%?. Haha I prefer to exit at 10 to 20% then move on to next company.
- In a year 4 seasons, autumn, spring, summer and winter. But in stock market it is only 2 seasons, Bearish X Bullish X 15 Days. these to seasons romance and alternate back to back, imaging two snakes in romance.
- Do you homework? Else self-disqualify yourself to not to be here.
- Don’t you watch Financial TV channels? Follow blogs? Read technical reviews? Learn about companies and their stability activities/profits/losses/balance sheet etc. if yes then you earn a value here.
- Plan few companies for long term, let them be there what ever they may be in the middle.
- New to Derivatives? Be a learner for at least 6 to 12 months before your 1st trade.
- Doing Forex Trades? Good, you are with the proper channel too.
- Do u have mutual funds invested? Trust me you have earned your place in investment industry, also you have secured your earnings in right way.
- You need to be big enough to be in Derivatives and commodities, 100 lots ability to be there and you should only focus max 10 lots. Means 1/10 of your investment to be kept for risk, not everything.
- Buy some land and put some trees, future is in greenery, leaves, flowers, fruits, stem, root hmm everything will be valued much higher. Always be active and searching/Finding some good similar tree structural plant in stock market. They become tree by time. Ohh you don’t need to water them. They are self-sufficient. At least 10 year to fruit.
- If you can invest Money then you have to definitely invest time, else prefer to find some assets-based investments. They got and earn the same potential.
- Have a good mentor till you become self-esteem in trading.
Hope these 20 points add value to your life of investing, please comment/share your opinion at the end of the page. Invest safely and keep reading my blog/articles. Join my daily connected updates group, hopefully worth of 300Rs: https://www.ravieqs.com/join-whatsapp-groups/