What is The Best Investment Strategy ?

My investment strategy is very simple.

Now let discuss:

1. I never trade intraday. When I was new comer in this stock market I have made some big profits as well as losses by doing intraday. But as I experienced​ with time I understood that intraday is not the proper way to make profit constantly. I realised that, I have to do something different to become a great trader / investor. Then I tried to learn and understand how the stock market actually work. And then have made my final strategy using which I am investing and making in an average 8% to 20% per month consistently.

 

1. Swing trading is my favourite strategy:

Now I am trying​ to explain my strategy in short and simple manner.

If I have Rs. 500000, I will divide this amount into ten equal parts and then invest in ten different stocks. That is, I will invest​ Rs. 50000, for each stock. And I will wait for over bought position ( using stochastics momentum and RSI). If my target achieve then I sell that stock & book profit. Then I wait for another stock to buy at oversold position ( I wait for below 52 weeks low). In this way I maintain ten stocks in my portfolio and I earn 8% to 20% monthly in an average.

Learn Details About Swing Trading

3. Now I will discuss about how I select my entry position (buy position) and exit position (sale position), exactly what I do:

• First of all I do some fundamental and technical analysis about the stocks I want to invest in (I have already explained about my technical and fundamental analysis in my previous answer).
• Mainly I invest for short term ( 1 month to 6 month).
• I buy those stocks only, which are already in 52 weeks low position and then I wait to achieve my target.
• I use RSI and Stochastic momentum to confirm over sold and over bought position with the help of Zerodha kite account.
• Normally​ I target for 10% profit. Sometimes I make 5% and sometimes I make 30% depending on the situation.
• In my portfolio there are stocks like Ashoke Leyland which are already more than 55% up ( I am holding them for last 6 months to 8 months ) and still now I am not selling them because I know they have very good potential.
• And lastly I believe in my strategy​ and beside that I use my intelligence​ to make my portfolio strong in the best possible way.

Make Your Portfolio Healthy Strong

I Know this is the best wealth creator in the world ever. That's why I get involved myself doing experiment & research and it's become my passion now. Each and every day after coming from school, from 5 pm to 10 pm I keep myself busy with stocks analysis and all.

So set your own strategy and move forward. Wish you all the best.

Open Your Online Trading and Demat Account with Zerodha and Enjoy Free Delivery Brokerage Charge.

Happy trading and investing ...!

With best regards,

Amiya Sarkar.