I have started investing in stock and mutual funds recently to generate a passive income in the long term, which actually became profitable for me. As I have my very first investment when I was in college but I closed my demate account as I could not concentrate on my study.
Last year, I started seeing some growth in my online businesses so I thought, it will be the best option to park my unused money. I chose both mutual funds and the stock markets to invest my unused money on Bank as Bank is only giving me around 3% interest which will not work for me.
I started investing in NIFTY50 stocks using 5Paisa Demate Account to start with & still using it for investing in the stock market.
Buy Low Sell High
Usually, when you get into the stock market for the first time, this is the basic strategy that we use. I used the same strategy but did something different here.
I was listening audiobook from Robert Kiyosaki, and I remember he told one thing on that audiobook that he usually buys stocks in bulk & after seeing its profit, he sells the stocks but not all of them. He only withdraws the amount that he invested & remaining stocks are FREE!
Let me explain you with an example.
Suppose you invested 10,000 Rupees in XYZ stock.
Now it is 12500 Rupees valued.
You only sell stocks worth 10,000 & keep the remaining stocks.
This way, you will get your principal amount back, even if you keep the stock for long term or short term, it’s your profit.
I have used the same strategy for Adani Green stock and now I have 200 stock of it for FREE. Since I have already sold the stock amounting the money I have invested in, I got this stock totally free of cost. The same strategy I have applied in POLYCAB stock. You can check the below screenshot from my stock portfolio.
Also When that particular stock is down than my average price, I add a few more quantity on my portfolio.
PS: I am not a stock market expert or analyst, nor I am a financial advisor. I am just showing this from my portfolio, as I wanted to share information with you which you can apply while trading to be profitable.
Do you share your comments below, which stock investment strategy do you use while trading stocks?