The Power Of Growth : Exploring 100X
14 Golden Rules to Earn from Share’s Investments!
Here are 14 simple rules to
help you get a better understanding of how to approach share market and
earn successfully; points which every investor should know:-
for 100X, Identify stocks that can multiply by many folds in the long run
Identify stocks that can multiply by many folds (say
20/100 times) in long run. There have been many stocks which
multiplied investors’ wealth by more than 25/50/100/500 folds in a
span of few years. You can see such list in our E-Book - HOW TO ACHIEVE
25-100X FOR WEALTH MULTIPLICATION. (Page No. 3)
2. Decide a
strategy and follow it with confidence
Different people use different
styles to buy stocks and fulfil investing goals. There are many ways to be
successful. However, once you decide your style, stick to it. An investor who
flounders between different stock-picking strategies will probably experience
the worst, rather than the best, of each style. Buffett's value-oriented
strategy had worked for him for decades, and - despite criticism from the media
- it prevented him from getting sucked into tech start-ups that had no earnings
and eventually crashed.
Neither investing style is
necessarily better than the other - both have their pros and cons. But active
trading can be wrong for someone without the appropriate time, financial
resources, education and desire.
3. Have two
types of portfolios
Let there be 2 portfolios one Core portfolio for long term
multiplications & second Satellite portfolio for
taking advantage of trading opportunities in the same share.
(growth) matters the most
It's important to understand that
what happens in the future matters the most.
A quote from Peter Lynch's book
"One Up on Wall Street": "If I'd bothered to ask myself, 'How
can this stock go any higher?' I would have never bought it as stock
price already went up twenty fold. But I checked the fundamentals,
realized that company was still cheap, bought the stock, and made seven
fold after that."
Decide based on future potential,
rather than just on what has already happened in the past.
5. Go with
winners, have courage to dump losers
Mostly investors book profits by
fully selling their appreciated investments, but they hold onto shares that
have declined in the hope of a rebound. Rather, regularly monitor quarterly
results of your stocks and firm up your views, after few similar quarterly
Similarly investor should know when
is time to get out of poorly performing, hopeless stocks, or be prepared to see
that the stock sinks to the point where it’s value becomes almost worthless.
6. Fully ride
Fully ride the winners, else you
will never realise the potential of multibaggers. If you have a policy to fully
sell after a stock has increased by a certain multiple - say 40%, for instance
- you may never fully ride out a winner which may be a great multibagger.
Though, partial profit booking can be done. But never sell off a great, growth
oriented stock completely.
running after hot tips blindly
It is a type of gambling. To be
successful in stock market, understand the reasons of your investment in the
company’s stock. Find out what you should pay attention to - and what you
8. Do not get
disturbed due to market ups and downs
You shouldn't get panicky when your
investments experience short-term movements. You should FOCUS on the big
picture, once you have chosen the right stocks.
ratio is not everything.
A low P/E ratio doesn't necessarily
mean a security is undervalued, nor does a high P/E ratio necessarily mean a
company is overvalued. Growing companies will ultimately command a
high P/E ratio. It is one, among many important criteria.
10. Avoid penny
A penny stock is riskier than a
company with a higher share price. High priced share may have valid reasons for
its valuation and future.
A common misconception is that one
would lose lesser in a low-priced stock. But whether you buy a Rs. 5 stock that
plunges to Rs.0 or a Rs.75 stock that becomes 0, either way you've lost full
value of your initial investment. A lousy Rs. 5 company has just as much
downside risk as a lousy Rs.75 company. And understand the reasons of poor
market valuation, which is due to poor prospects of revival/ growth of penny stock
company. Some/ many of penny stock companies may completely collapse.
11. Diversify your equity portfolio
it’s always beneficial to have stocks from different sectors and
Industries. It is wise to stay diversified with your stock investments.
Stagger your buying as well as selling
Never buy the desired quantity
in one shot, stagger it. Similarly, do not sell entire quantity in one shot.
13. Review performance of your stocks at least
once after quarterly results are declared
One cannot predict a 100X stock and simply sit tight on it without being
alert, hence relentless search for a good company, continuous review of
company’s performance, news, expansion and other future plans, aggressiveness,
changes in economic & technological environment etc. will be key to remain
with the right stocks.
14. Build up a
portfolio for your children
Stock Market gives golden
opportunity to build up a portfolio for your children. Whenever you invest for
long-term, the stocks turn out to be good even in short-term.
The team stocksbazaar consists of energetic, passionate and highly competitive individuals. It is promoted by EH Research (Investment Adviser - SEBI Reg. No. INA000003767). The team leader is Mr.Akhilesh Jain, BE(Hons) from BITS Pilani and PGDIE from NITIE Mumbai, with 30+ years of experience in spotting the growth power houses at early stages. He believes in buying stocks of great companies at early stages, holding them for long term in Core Portfolio and trading in Satellite Portfolio to take short/medium term price advantages to generate wealth.