EASIEST FORM OF MONEY GROWTH

         On Investing and Money Growth:-  I love making money, well who doesn't. I have had a good experience of losing a lot of money while making money and I finally concluded the best way to grow money. I started with Mutual Funds, learnt Derivatives, where I went aggressively. I would feel very happy when I made fast profits and enter the markets next moment to lose what I have earned. I would again enter to regain my losses. Profit to Loss was 1:2. i.e if profit once, it was loss twice.

          However, I found that if at all one has to get into derivatives, it should be against a market lot of shares. Let's assume I want to get into derivatives of Titan Company, where the market lot is 1000. I would first buy 1000 shares of Titan in my portfolio. I would then buy a put, if there is a risk of a fall.  Second strategy is while holding shares of Titan, I will sell a call of titan at near value, i.e. in case I feel market is almost constant. My portfolio remains protected and long run I make some money. The only point is that one must have some idea as to where the market is headed. Comparison of moving averages, their crossing points give a fairly good idea of the direction of the market. Best is to consider 5 days, 8 days, and 13 days moving averages. These can be easily made ready by noting the market closing price.in exel sheet. in fact the same are available in www.nseindia.com. When the 8 DMA, and 5 DMA are below 13 DMA, the market is heading down. On the other hand if 8 DMA and 5 DMA are above or more than 13 DMA, the market is heading up. One should utilize the intersection points to buy and sell. One can also judge the direction of the market from RSI. Relative Strength Index are found for stocks and Indices on various site. this can be found out by search engines. There are a no of methods of technical analyses to judge the direction of stocks and indices. However most people tend to ignore the system. They instead tend to go by their gut feelings. That is why they make mistakes and incur losses. To conclude Derivatives if practiced without thorough learning, could be a weapon of mass destruction. Even professionals will lose in derivatives as no one can time the market. I have known a friend of mine admitting that He had become a Millionaire by practicing Derivatives. When I asked him How? I came to learn that He was a Billionaire before that :)t. Derivatives is a good game if one has money to spend

       I will advise all working professionals and personnel to invest in either good stocks. Better, if one has no time, to invest in Equity funds. SIP i.e. Systematic Investment Plan is unbeatable and time tested method. Tax Saving ELSS should always be utilized. To give an example of ICICI Prudential Tax fund, it has given return of  above 20 percent annually since inception. if one invested Rs 5000 in 2000, It has grown to 74000 Rupees today. The power of compounding works best in such well managed funds. I will advise Franklin Templeton Tax saving ELSS, Quantum MF tax saving ELSS, HDFC Tax saving fund for the salary class as it gives double benefit. The saving is deductible from tax upto 1,50,000 under 80CC as well as the returns are Tax Free. this is the best form of investing for the Salaried class.

I advise all readers, specially young leaders in making to go through following blog : -

http://www.made2lead.com/?m=1

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