In every market if you want to invest, you must do it with proper strategy. If you are investing without any plan then no doubt you will face many trouble. Nowadays, this is the main problem with investors that they have not defined strategy for their investment, infact they dont know a single thing about that market which they are going to invest.
This is very unfair with the investment you are doing, its important to learn atleast about the basics of that market which you want to invest. You need to learn about different strategies that can help you with your investment. Its impossible, if you have proper strategy and you end with loss.
I have 7 years of experience in investing in different markets whether it belongs to #Crypto, #Stock or any other physical market. I have faced many good and bad times, I have lost huge money, earned some portion back and learned many things regarding investment.
The main thing which is my first priority is the proper strategy and plan for your investment. It doest not only belongs to investment but this can be applied in your every aspect of the life. If you have proper planning about your education then no doubt you will reach your destination, if you have plan for your marriage life then no doubt you will not face hurdle. Similarly, you can apply this method in business life, no doubt success will be yours.
Specially, If I talk about CRYPTO and STOCK market, these markets are more better to run with strategy. Stock market is one of the best and professional markets for investors. This is because the company and shares exist in real and that is what investors like. Why crypto is neglected by huge investors? this is because there is no real existance of any project physically, if there, only few.
I have a good strategy in stock market to share with you guys. First understand it properly, if you find it good then do a backtest of it, apply with very little amount, if you find it helpful then you can go with it.
This Strategy Is Best For Stock Market
The strategy is simple, safe and profitable. What you have to do is, divide your amount in 2 equal portions. Select 5 fundamentally strong dividend shares that also provide good dividend on yearly basis. Atleast 12% APR are preffered. Let say I chose EFERT, KAPCO, HUBCO, METL, MZN. These are the top Pakistani shares which provides 12% APR atleast.
In the very first step, I will invest 50% of my amount in these 5 shares in equal proportion. I will hold these shares and will keep on earning dividend profits. These dividend profits will make 0.5% of my whole amount which is a kind of passive income.
The next step is to use the 2nd portion of the amount. I will watch the shares. If any share reaches RSI 30 then I will add 20% of the amount in that share. Will wait for it to go back to RSI 70 to sell. Similarly, If I find another share that will reach RSI 30, I will again invest another 20% of the 2nd portion. Note that your investment shares must be the ones which you invested the first portion already.
Let suppose I invested 50% of the first portion in EFERT. I will only look the chart of the same share for the swing trade as well. If I see that EFERT reaches RSI 30, I will add 50% of the 2nd portion of my investment. Will wait for RSI to go back to 70 to sell.
There will be no Stoploss in this strategy. Swing trades might take 15-30 days. You need to be patience in this strategy. Applying this method will help you earn 2-4% on monthly basis which is very good. I hope you understand the strategy.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Those who will interact will get my 100% upvotes. My staking is increasing. Thank you all for your time reading the content.
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REMEMBER: We should prepare for the unexpected and hope for the best. Life may not be easy, but you must do your best and leave the rest to God.
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