In this article we we learn a Proven way of making money using stock market. Buy one share for each company that is in Nifty 50 list and you also think the company produces a valuable product that you also use.
For example, see where people go to buy gold, i see a shift toward buying jewelry from brand as well because people want to go with ISI Mark and a brand whom they can trust. So, no wonder, Titan is doing good.
If you have to buy a car which car do you end up buying ? You can pick an automobile company like Tata Motor or Maruti Suzuki.
In big cities people use Big Basket or online grocery services and big brands like Tata Consumer is doing well there, again trust factor with Tata brand.
In which bank do you feel safe to put your money? Maybe SBI or HDFC Bank? So pick one bank share.
If you have to buy a bike which one you go for, I am sure Royal Enfield is one nowadays so let’s pick Eicher Motor.
In day-to-day life we use oil, soap etc, right? See how many products you use from company like HUL , Nestle and ITC .
These are some of the Examples via which you can pick stock, so far i just see nifty 50 list of companies and pick some of the stock which we trust or the company whose product we use. Just buy 1 stock for each of them and keep monitoring them daily. It will hardly take 5 sec of yours. Just look at the prices daily, it will go up, it will go down and you just watch, you buy just to moniter the price.
Say any of these stocks go down 10% or more, then review below :
Is there any news going on for that company ?
Is there any big news that is negative or do you find something normal and the price goes down?
If you see nothing serious but the price drops more than 10%, take a position in the company with an amount with which you can stay there for 1 year at least ( just put 1/10th of your total money in the bank ). Just monitor the price and when you get 7-10% profit, book the profit and just keep 1 stock to keep monitoring the price for the same. If you get anything more than 10 just come out of it.
You can do the same thing for Nifty 50 index fund also to be safer if individual stock seems more risky to you.
Now here is the main idea.
Keep your cash rich for the once-in-a-lifetime opportunity when the stock market crashes due to a recession or covid like scenario. As you have 1 stock with you you will be aware of where the stock market going and in a Covid like scenario you know why the price is going down. This is the time when you have to trade on a daily basis for down side market as you know market has to go down. Once you see
the market already fall at least 50% just stop doing that and start taking a position with 50% of your capital in nifty 50 and 50% capital in all the companies whom you monitored daily and you trusted, they are also part of nifty 50. Don’t worry and put all your money in the stock market and stop watching it until the scenario is normal, you know what normal means, In the COVID scenario people are asked to stay at home, Malls and all public places were shut down. So, normal means when all restrictions are removed then just sell everything.
If you just wait for the right time and then invest with a big amount, no one can stop you from becoming rich using the stock market.
