I’m not here to discuss the movie off course. I’m just telling the various Strategies of Picking Stocks for people who are Tax payers like me (not that important) …..
Strategy 1: Buy only blue chip stocks at every dip. And keep holding the stock for a decade or half. Majority of old aged people and time strapped investors go for this. This is not a bad strategy but believe me this strategy will never give more than 15% per annum return. Not bad still better than a lot of debt related fund.
Strategy 2: Buy momentum stocks at every dip and sell at every high. The best way to go about. This is how majority of stock traders make money in market. Bourses are all about Money rotation. But this raises the basic issue “Whether a retail investor can Time the market.”
Strategy 3: Follow the recommendations of Stock analyst and advisors and make money. The worst strategy!!! Try this and believe me you will end up booking huge losses. The strategy goes worst if you are a Margin Trader. Usually, you will buy the stocks at higher price and sell it at lower price.
Strategy 4: Park 25% of your money in blue chip and 50 % money in MIDCAP. Keep the rest 25% of the money in CASH. Remember cash is the king. And if you are cash rich irrespective of the situation of market you have the Buying and most importantly Averaging power.
Strategy 5: Go for a SIP of stocks. Just follow the Systematic Investment Plan of Mutual Fund. Select one or two stock and fix a particular date of month. Keep buying a fixed quantity of that stock on that specified date. Even layman like me will not loose money. I BET ON THIS…..
