Formula To Earn Billions In Stock Market | Beginners Strategy | Don't Miss Out On This To Repent
Updated: May 12
Many of the people lost their money by investing in stock market in regards of not preparing for the action. Today in this article we are revealing a formula from which you can make billions in stock market easily.
As in the beginning stated, we don’t prepare for the action. What we do is aim-shoot-ready. What does it mean?
Lets understand every term:
Aim: Choose a broker
Shoot: Buy the stocks
Ready: Lose the money and learn after that how to do investing.
Instead we should apply the formula of ready-shoot-aim.
Ready: Learn the basic concepts of investing
Shoot: Choose a broker
Aim: Buying the stocks
If we have health problems we take advice of doctor, for legal problems we consult a lawyer, for fitness we need a gym trainer. But when we are investing we take advice of our family and friends. This is not a right method.
This is not the formula I am talking about, it’s just a glimpse, continue reading for that one formula.
Lets understand two core parts of understanding the stock market:
For investing in a company we can use two methods stated above i.e. fundamental analysis or technical analysis. If you want to make billions in stock market expertise in anyone. Do remember, fundamental is difficult, technical is simple.
To know about the fundamentals of a company you have to do a lot of research about it, while to know about the technical of the company you just need to understand the chart.
To know the fundamentals you need to dive deep into various terms such as economy, industry, company, government policies, monetary policies, crude oil rates, US dollar fluctuation, geopolitical scenarios, global market, budget, competitor of the company you are planning to invest, market share of the company, data, impact by various factors, market regulator, management of the company, product, distributor, balance sheet, cash flow statements, profit and loss ratios, projection, etc.
I am sure you might have changed your perspective on investing. Wait, technical is left yet. To do technical analysis of the company you just have to look on price and trend of the stock. Do remember golden statement by Dr. Vivek Bindra, “trend is your friend, until it bends”.
We can say, fundamental is the cause and technical is the result. In simple language, if the fundamentals are bad of the company the chart will go downwards and if the fundamentals are goods the chart will go upwards. To learn fundamental analysis you have to be a chartered accountant and to learn technical analysis you don’t need any master degree. A small kid can also do the technical analysis by seeing the chart. For example, if the management, market share, balance sheet, cash flow, profit and loss ratio and other terms are getting negative the chart will go downwards and if the management, product, geopolitical scenarios, growth, data, balance sheet, cash flow statements are good the chart will go upwards. It’s simple as that.
To deep dive into fundamentals you need massive information while to find the results of the cause or fundamentals you just have to analyze the chart.
Whenever you invest in stock market there are five possible outcomes: high profit, high loss, less profit, less loss and breakeven.
For example: you are fit and everything is fine about your body, still you are having heartache. How can this possible, if you are finding yourself fully energetic, looking fit and fine, taking care of your health still having heartache. You go to doctor and doctor gets your electro cardiogram (ECG). You find internal problems in your health because of it you are having heartache. Similarly, internal problems are the fundamentals of the company and charts is the technical part of the company or ECG of the company.
In terms of investing or buying stocks, if the chart of the particular company going upward buy it and if the chart is going downward sell it. Simple as that. Keep your eyes on uptrend and downtrend.
On different websites like investing.com or moneycontrol.com you get tool called Relative Strength Index – RSI. To make projections about the stock you can make use of this tool. If the RSI is below 40, do sell the stocks or don’t buy. If the RSI is above 60, buy the stocks or hold them as they are going to get risen. And if the RSI is between 40-60 which we call ‘sideways’ means it is not going to get rise or not going to get low.
Always remember news comes later and trend comes earlier. Trend always gives indication about the company's future while news can get all your investments turn to zero.
You probably know about the Satyam scandal. The trend was going downward since 14th July, 2009 and the news came on 7th January, 2010. The people who were dependent on news lost their almost all the money but those who were dependent on trend saved their money. Similar case happened with Kingfisher Airlines, DHFL, Jet Airways and YES Bank stocks too.
Getting summed up, technical analysis is easy and fundamental analysis is difficult. To do fundamental analysis you need to have a finance background and to do a technical analysis you don’t need it. For technical analysis free training programs are also available on web. Technical analysis is an universal application while fundamental analysis requires massive information about the company. Technical analysis can be used for short term investing as well as long term. Data required for technical analysis is widely available on web while for fundamental analysis it is not.
Hope you find this article helpful, happy investing!