The Rules for Making Money, Especially When Greed Takes Priority Over Intelligence!

The Rules for Making Money, Especially When Greed Takes Priority Over Intelligence!

Let's accept that everyone thinks of greed in our daily life. But when it comes to share market it can harm you badly. So this article will help you to overcome it so that we will choose the right path at right time.
The Rules for Making Money

Understanding Market In Bullish Phase

The above situation is faced when the market is in a strong bullish phase. When the market turns from the bear phase to the bull phase, the script in the bear phase are quite undervalued and therefore there are many scripts that take the form of roller coasters ride.
understanding market

However, Investors take advantage of the scripts charged at lower prices when there is a turnaround in the market from the bear phase to the Bull market phase. It is studied from the survey that hardly five to ten percent of investors (Big investors) could take initial advantage of volume in the Bear phase.

Generally in the Bull market Prices very promise 100% to 200% or furthermore. This is determined on the basis of the bull Period and the breadth of the market. Initially, the information Passed on to the investor takes around 3 months, and thereafter they buy as there is fair evidence that the Bull market has just begun. We believe the in a bull market you are at a greater advantage to have financial gain unless you control the psychological emotion greed and by applying the principle as jotted below.

Steps To Follow In This Situation

Below are some of the steps you can make or follow in the bullish trends in the market. So that you can gain a high profit in the process.

Step 1:- Make A List And Records

Make a list

First of all, you should prepare a list of your scripts for stocks held by you till the last day that mean a very long time in the following Performa format. Performa for keeping a record of the script's health or off a new purchase.
  • Serial number
  • Name of the company
  • The number of stock held or purchased. 
  • The date of your purchase
  • Purchase price  ( if stocks are old mention approximate purchase price)
  • Amount of investment in the stock
  • Which category it belongs i.e.  i)Specified group ii) B-1 group iii)B-2 group iv)Category and v)Detailed category
  • Which industry it belongs
You have prepared a record of your individual stock holdings. After having prepared a price chart statement as mentioned above you can note down the everyday prices of every script in the chat. For the first price you know down in the statement, you will know the difference between the purchase price and the market price. For new purchases of stock, you can also prepare a statement as shown above. Now you are ready for action.

Step 2:- Identify Correctly

Generally, in a good bullish market, the prices of group shares Change slowly because they are reasonably at a higher level. The B-I group shares generally considered liquid shares because these shares move faster than A group shares. The B-II Group there are 3rd categories talk normally move faster than both the aforementioned categories and this is where you should take prompt action because these stocks move upward faster and are likely to come down sooner as they are not fundamentally strong.

Step 3:- Act Accordingly 

If you are holding A category and B-I category stocks and you find that they have risen by more than 33% you should sale 25% of the stock.

If the prices have not shot up by 33%; book profit in the balance of 50% of the stock and wait for the right opportunity to sell the balance talk only win to figure out that you are getting a good price and good profit.

For instance, you have purchased 500 stocks for Rs.100.That is you have invested Rs.50000. Say now if the stock moves up by 33%, i.e. Rs.133; if you sell 125 shares you get 16,625. On further rise by 30% from your base prize you sell for the other 50% of your balance stock,i.e.,175 shares, which will give you rupees 29,050. You have realized Rs.45, 675, against your investment of Rs.50,000. You are left with a balance of 175 shares to sell above 100% profit view the market condition. 175 shares at the rate of Rs.200 par shares, you are getting Rs.35,000 and your overall profit would be 62%. If you can wait further after watching the market condition; you may earn higher profits.

For the Z category of stocks, consider selling your entire shares As soon as there is liquidity in the script, as these stocks are not regularly traded unless some big operator pushes the prices for these stocks for his benefit.

If you adopt the practice, use greed would be automatically controlled you will not be a victim of nervousness and fear.

How It Will Help You?

In this process, you can get rid of your B-2 and Z category of stocks and even enjoy profits with your initial capital. Out of the proceeds from the sale, you can invest in fundamentally good stocks and make your portfolio amount risk-free.
how it will help you

  1. When you have sold your stock as suggested above possible that the prices of some stocks may appreciate more and you may feel depressed about why you have sold these stocks early! In the stock market scenario, one should not repent another’s action. If you have made less profit by selling early you can at least have utilized the out of sale proceeds and this year will give you a better return in the future.
  2. A second important point is that, if the prices of the stock you hold have gone up, don’t purchase these stocks again because you may feel that you can make more money. Buy these stocks only if someone professional or repeated Journal recommends you to purchase the same with at the existing price.
Though you might be getting tips from your friend or broker or any staff member of the company, always do self-study of the record of the company and denies thoroughly the data and confirm it.

Never invest on the basis of rumors. Interest parties spread 90% of such rumors and they take the investor for a ride. Consult genuine and reputed journals and financial newspapers for the selection of your investment. Subscribe to journals like the Dalal Street investment and Flash Newsinvestment for regular updates and authentic information. Rather than browsing guide that might actually miss guide you.

Final Words With Conclusion On This

Always invest smartly and take your decision wisely. I hope this article will help you to choose the best decision according to the market condition. If you have any doubts or queries comment below. I will be happy to help thanks for reading.

A dynamic professional with around 22 years’ rich experience in Marketing, Business Development and Business Analysis. But above all, a passionate Capital Market Analyst and option trader for last 20 years with in NSE/ BSE and cryptocurrencies.