2X Capital In 16 Months: Unlock The Secret Strategy

New To The Market?

If you are just getting started in the stock market, one of the wisest moves you can make is investing. This way, you can learn more about the market structure with low-risk exposure. Even if your goal is to be to become a successful trader, investing will be the first necessary step in your path to success.

The Trend Of Chasing Trends

Lately, I have been observing the trend of finding the ‘Next Multibagger’. As alluring as it may sound, this should not be one’s approach. In the quest to successfully identify multibaggers, we often end up over-diversifying our portfolio—even if few of our stocks yield multifold returns, this effect would be negated by the returns of other stocks. Your goal should never be to identify multibaggers but to grow the overall portfolio.

A Breakdown Of My Strategy

✅ Sectoral Analysis: Always start with analysing the sectors. See which companies are the leaders in their respective sectors and read annual reports to get a clearer picture of the management. This understanding of the sectors can alone help us make 20-25%. Then learn to identify the cycles. There are a few cyclical sectors like banking, sugar, metals etc. Add more depth gradually by identifying the best in these sectors to reap 35-40% returns a year.

✅ Apt Investment Instrument: If a passive approach is preferred for investing, go for ETFs—this can fetch somewhere between 12-15% returns per annum. If building a portfolio concentrated in a few companies is the objective, then equity is the way to go. But if holding 50-60 stocks of different companies is the plan, then mutual funds might do the trick.

✅ Risk Management: I don’t commit 100% of my capital to a stock at any time. I am likely to invest heavily once I have a strong conviction, validated by the price movement. Contrary to popular belief, I find ‘Pyramiding up’ more lucrative than ‘Averaging Down’. If things don’t go my way and the stock plunges, I book my losses and move ahead.

✅ Balanced Wealth Creation: To make the most of the stock market, it is important to have multiple pipelines of wealth generation. These pipelines act as pillars needed for a strong foundation. So, instead of sticking to just investing or just trading, do both.

Going short in the derivatives segment has worked wonders for me. My portfolio acts as a natural hedge this way. And historically speaking, there rarely have been unexpected up moves but there have been several instances of sharp fall.

2x Your Capital

Now, back to the agenda of doubling the capital in 16 months. We just have to make 1% a week to achieve this seemingly ambitious target. The power of compounding will assist us in this venture. In 32 months, we would have grown our capital by 4x and in 10 years, our wealth would skyrocket by 16x.

To discover further details about my intraday trading strategy, watch this video.

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Happy Trading!