How It Works ?
How Mr. A built his Dream Wealth with below mentioned Simple Approach.
Minimise Risk
Mr. A had Rs. 2 lacs and wanted to begin investing in stocks. He wisely diversified his Investment in 20 Stocks i.e. Rs.10000 in each Stock.
Book Profits
Mr. A sold those Stocks time to time where he got Satisfactory Returns in Short Period. He held Quality Stocks where returns were yet to come.
Power of Compounding
Mr. A reinvested the amount derived from sale of stocks, in New Quality Stocks as he was much aware about common saying that Power of Compounding is the 8th Wonder of the World.
Underperformers
Mr. A sold those Stocks which were not performing well in 1-2 months as per his expectation and shifted that amount too in New Quality Stocks.
Conclusion
Mr. A was glad he avoided futures, options, and intraday after earlier losses. With disciplined diversification, he finally saw his investment start growing steadily.