Introduction:
Hey everyone, welcome back to Capital Grow Blog! Today, we're diving deep into a tried and tested strategy for smart stock investment. If you're looking to make informed decisions and maximize your returns, stick around as we break down the process step by step.
The Initial Setup:
Imagine you have a fund of Rs 2 lakh and you're ready to make strategic investments. The first crucial step is to divide your fund into two parts – one with Rs 1.5 lakh for shares and another Rs 50,000 for a safety net or liquid investment.
Choosing Your Shares:
Now, let's talk about the exciting part – choosing the right shares. We'll focus on a strategy based on consolidated breakouts. This method helps you identify shares that are primed for growth after a period of consolidation.
Dividing the Investment:
Out of the Rs 1.5 lakh allocated for shares, we're going to distribute it among 10 carefully chosen shares. Each share represents one son in our analogy. We recommend investing in one share at a time to ensure a strategic and steady approach.
Selecting Shares with Consolidated Breakout:
As per the training course To choose the right shares, we'll use a tool that filters the top 500 companies based on consolidated breakout patterns. I'll provide a link to the tool in the description so you can follow along. Remember, this method minimizes risk by focusing on top market-cap companies.
Execution and Compounding:
Once you've selected a share, invest Rs 15,000 in it. Hold onto the shares until you reach a 6% profit target. Once the target is achieved, take half of the profit as a dividend for yourself. The remaining half? Reinvest it back into the market for compounding growth.
Handling Market Fluctuations:
In case a share doesn't perform as expected and falls to Rs 20%, don't panic. Treat it like a temporary setback. Consider SIP (Systematic Investment Plan) in that share by investing 1/15th of the initial amount in it monthly until the market conditions improve.
Conclusion:
And there you have it – a comprehensive guide to strategic stock investment using consolidated breakout patterns. Remember, this strategy emphasizes patience, strategic thinking, and disciplined investing.
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