Trading in share market can be very tricky and more often
than not, one is doomed to lose money.
But
There is 100% guaranteed method to make big money on share
market
If
You have unlimited money to begin with.
Imagine following situation
(1)You have bought particular share worth 100X, and the
share falls down by 10% to 90X
(2) At 90Xyou buy 2 more shares, so now you have 3 shares of
value 90 for investment of 280 and the same share loses further 10% of its
value. At this point you buy 4 more shares. Now your investment is (81 X 4)
+280 = 604. This means you have 7 shares
each of value 81 = 567X for investment of 604X.
(3) There is further drop of 10% and you buy 8 shares @72.9.
Your investment is (72.9 X 8) + 604=1187.2 and value of your shares is 72.9 X
15 = 1093.5
(4) At next drop of 10% you buy 16 shares @ 65.61. Your
investment is (65.61 X 16) + 1093.5=2143.26 and face value of your shares is
2033.91
(5) Then 32 shares @ 59.05 . Meaning (59.05 X 32) + 2033.91=3923.51invetment
for 3720.15 share value
(6) Next is 64 share @53.15. Meaning (53.15 X 64) + 3923.51=7325.11
investment for 6750.05 value.
By any natural law, the share which falls like this , on one
fine day bounces back by at least 15 to 20 % from lowest point.
In above mentioned situation, imagine share rising by 20 %
from 53.15. In such case you will have 131 shares @ 63.78 making aggregate
value of 8355.18 on investment of 6750.05. Investment is of 6750.05X100= 675000
and return of 8355.18 X 100= 835500
This is not joke. This is very practical way of doing it.
Deal in prime shares. Start with small quantity, so that you can be in profit even
after ‘7’ doubling.
Instead of 10% fall keep smaller levels like 3 or 4 % fall. Never book loss and never exit till you get percentage profit you have planned, always exit when target is achieved and you will definitely make money.
Instead of 10% fall keep smaller levels like 3 or 4 % fall. Never book loss and never exit till you get percentage profit you have planned, always exit when target is achieved and you will definitely make money.
This is the only way of making money in share market. If you think, studying graphs, trends,
listening to Pundits on TV etc. can help you in making money in share market,
then you are in for getting rude shock.
For your satisfaction, study 1 year graph for any of the ‘Top 50’company which is losing its share value. You will always see, at certain point of time the share value of that company jumps by 20% or more, for short period.
For your satisfaction, study 1 year graph for any of the ‘Top 50’company which is losing its share value. You will always see, at certain point of time the share value of that company jumps by 20% or more, for short period.
I am writing this backed with experience, though I start
with very small amount and stop doubling after a certain stage and then wait till I am in
profit.
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