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Mastering the Box Theory

  From 6 Years of Losses to Six-Figure Profits: Mastering the Box Theory If you’ve been struggling with trading, you’re not alone. Many spent six or more consecutive years in a cycle of frustrating and humiliating losses. Me was grinding every day, studying endless charts, only to watch my hard-earned money vanish into the market. Everything changed when I discovered a simple strategy called the Box Theory . Over the last eight months, I’ve seen hundreds of traders use this exact method to turn their fortunes around. Here is how you can use it to find consistency in any market—whether it’s Bitcoin, Forex, or the NIFTY. Step 1: Set Up Your "Naked" Chart The pros always start with a Daily Chart . The reason is simple: the daily timeframe has the highest concentration of liquidity. This is where the most significant activity happens and where your chances of making a profit are highest. To start: Open a daily chart of your chosen asset. Ensure it is a "naked" chart —no...
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Creating Wealth with 8% Weekly Returns: A Guide for Full-Time Workers

Dear Team,

Let's discuss a powerful strategy for creating wealth with an 8% weekly return. This method is particularly suitable for retail investors who are full-time employees and looking for a way to generate passive income.

Step-by-Step Investment Strategy

Initial Investment and Trade Setup:
  1. Initial Investment: Start with ₹1,00,000.
  2. Split into 10 Parts: Divide this amount into 10 parts, each ₹10,000.
  3. Trade Initiation: Initiate two trades:
    • Trade 1: Buy at the current day's closing price.
    • Trade 2: Set a limit order at 8% below the current price.
Two Scenarios:

  1. Scenario 1: Profit Scenario:

    • If the trade gains 8%, you reinvest the principal plus profit (minus brokerage).
    • For example, ₹10,000 grows to ₹10,800, minus ₹200 brokerage, leaving ₹10,600 for the next trade.

  2. Scenario 2: Loss Scenario:

    • If the price falls 8%, place an additional trade in the same script at the lower price.
    • Hold both trades until the combined value recovers from -8% to +8%, resulting in a total of 16% profit.
Trade Completion Time:
  • Each trade can take a week, two weeks, or up to 10 weeks to complete.

Block Diagram for Investment Strategy

Here's a visual representation of the investment strategy over multiple trades:

Week 1
p+--------------------------+
| Start (₹1,00,000)        |
| Split into 10 parts      |
| Each part ₹10,000        |
+--------------------------+
            |
+--------------------------+              +--------------------------+
| Trade 1A (₹10,000)       |              | Trade 1B (₹10,000)       |
+--------------------------+              +--------------------------+
            |                                      |
+--------------------------+              +--------------------------+
| Gain 8% (₹10,800)        |              | Limit Order -8% (₹9,200) |
+--------------------------+              +--------------------------+
            |                                      |
+--------------------------+              +--------------------------+
| Reinvest ₹10,600         |              | Gain 8% (₹9,936)         |
| Trade 2A (Week 2)        |              |                          |
+--------------------------+              +--------------------------+
            |                                      |
+--------------------------+              +--------------------------+
| Gain 8% (₹11,448)        |              | Reinvest ₹9,736          |
+--------------------------+              | Trade 2B (Week 2)        |
            |                                      +------------------+
           ...                                     | Gain 8%          |
                                                   +------------------+
                                                   | Reinvest ₹10,515 |
                                                   | Trade 3B (Week 3)|
                                                   +------------------+
Week 2 Onwards
  • Continue the pattern of reinvesting gains and placing limit orders for subsequent weeks.
  • Hold trades that fall 8% until recovery to ensure profitability.
Complete 52-Week Cycle
  • Extend this strategy for 52 weeks, reinvesting and managing trades based on the above scenarios.
  • Each trade will contribute to compounding your initial investment.

Risk Management and Mitigation

  1. Splitting Investment: Diversify by splitting the initial investment into smaller trades.
  2. Risk Calculation: Calculate risk before each investment.
  3. Mitigating Trap Trades: Have a strategy for trades that fall into loss before recovery.
  4. Chart Analysis: Learn to read charts to make informed decisions.

Conclusion

By following this structured investment approach, retail investors can potentially turn ₹1,00,000 into a substantial amount through disciplined trading and reinvestment strategies. This method requires minimal time commitment—just 15 minutes each night to manage trades.

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