Saturday, April 11, 2020

The 3T Strategy

In our Stock Market , there are two types of people


  1. Trader 
  2. Investor

The trader always want to make profit as soon as possible , so it studies small small tools to come out with profit in short span of time. These small tools can predict from when and for how entry & exit should be profitable in any stock in share market by which he can earn 10-15% profit some times 20% profit booking is possible.
Where as the investor hold his position on the stock , about which the investor think that stock is valuable and can provide 1000-1500% profit . yes you read it correct 1000-1500% profit. don't you believe me , look Eicher Motors share and you will understand. 

Now think about that both starts working together , if you are looking for a stock which is a value stock and along with that you can earn profit too in short term duration . 

For example , Eicher Motors , a share which is a value stock in which i am thinking for investment , and i have 5 Lacs Rupees for investment. So what should i do being a Investor plus Trader ; i would keep 70% of the money for investment and 30% money for Trading. 

This process could help me in making of independent from my capital investment. HOW ???

If i invest 70% of 500000 that is 350000 rupees , and remaining 150000 rupees will be with me for trading purpose .Assuming that i am good in Analysis and i can understand the candle stick patterns and technical indicators , can earn 10-15% in Trading.

If i consider it , that i will earn 12.5% monthly , which is quite possible for one who can understand technical tools and technical indicators very well. so i will be free from my capital investment by 12th month . 
If i consider that market is not that much goo to take out money so easily , and i earn 12.5% profit in a quarter so i will be free of my investment by 34 th month that is about 3 years approximately. 


so that will be the power of doing both the things together. Strategy is 3T that is "Twenty Twenty & Test" . In Twenty Twenty i need to maintain my strike rate by risking my amount , and in test i have to be very sound with my practice and technicalities.

Please note that it is not easy to take out the value stock from market it required one to be very strong in his fundamentals.


So now 
If any one asks you , what is beneficial being a trader or investor , tell him Both. 
If any one asks you , what should i learn Technical Analysis or Fundamental Analysis , tell him Both.





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