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:
- Initial Investment: Start with ₹1,00,000.
- Split into 10 Parts: Divide this amount into 10 parts, each ₹10,000.
- 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:
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.
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
- Splitting Investment: Diversify by splitting the initial investment into smaller trades.
- Risk Calculation: Calculate risk before each investment.
- Mitigating Trap Trades: Have a strategy for trades that fall into loss before recovery.
- 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.
Comments
Post a Comment