Why you should not trade in Market based on Quarter Results ? – India Share Market Wealth Creation

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Indian Share market is full of ups and downs where the large cap majorly depend on quarter results for increase and decrease in price of stocks or stock holding . While midcap and small stocks can grow once or twice in a year based on their sudden performance or some news or due to some orders that these companies receive .

So , it becomes difficult to decide whether to invest based on a news or should invest based on the company’s performance in the few quarters . How company’s performances changes with quarter profit results and balance sheets and what is the ideal way of keeping your returns safe in the stock market is what we have tried to explain in this article .

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Wealth Creation or Gambling in Share Market ?

For wealth creation long time investors generally sees their investment growing . Some popular stocks like Hcl , infosys , wipro , Vedanta stock or Tata Motors etc all such stocks are listed on the stock market since years . In the last few years we have also seen some exceptional companies making good returns in the single year to as high as 100% or 200% returns .

But without considering a long term vision , you cannot earn profits or investing in large caps or mid cap stocks for Intraday trading or daily profits , then it just a pure gamble . One must consider investing in stocks for atleast 6 months and with a ,minimum target of receiving returns of more returns than the inflation rate in the country.

You should keep a stock for atleast 6 months in your portfolio to earn good returns on your investment.

What you are doing by investing on the basis of news ?

Investing on the news means if a company received some new order or gain some legal aspect of regularity or legality in their working from the government , the company can see a great surge in the stock price or a decline in price of the stock.

This affects the price of the stock very much and if a huge quantity is invested in a particular stock the holder can loose great portion of the capital with the decline in negative trend of the stock of the company.

Trading on the basis of news considering the stock to be the top gainers can be a good option for trading on the same day basis where you can generate wealth even in the single day.

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What is the ideal approach of Investing and expected returns in 6 months in a Stock ?

The ideal approach of investing and wealth creation is :

  1. Investing in the stock when the stock is near to the 52 low or investing just before the stock is expected to go for a breakout.
  2. The stock should be chosen from large caps within the price of Rs 1000 and below Rs 2000 where you hold the least risk.
  3. The stock should be kept in bucket till it reaches a minimum target of 10%profit and goes to a 5% loss .

Should go with One time investment route or SIP investment route in Share market ?

For better returns it is always said that the price you are getting today is the best and you will regret loosing the stock at this price . If you are a salaried employee , you can start making an SIP on your own with any random amount other than buying at regular intervals with fixed SIP .

One time investment in any stock is definitely a risky option but once the price shoots up on the quarter results or company profit or dividend news the stock surges massively.

Quarter Results Checking and Investing in Share Market ?

It is important to check quarter results of the company before they are actually declared or keep a view over the market experts like Anil Singhvi on Zee Business News to check if the company is moving in positive direction or not .

Also , checking quarter results is important to keep your investment safe where it is important to check if the company is not getting dormant or delisted or is getting continuous losses.

Ideal Shares or Stocks to choose based on Quarter Results 

Ideal Shares that you can buy on Stock market within investment of Rs 50000 to make it 1 lakh or more :

  1. Shriram Finance .
  2. Tata Technologies
  3. Adani Enterprises
  4. Adani Ports
  5. Infosys.
  6. Tech Mahindra
  7. HCL Tech
  8. Wipro
  9. Vedanta
  10. Reliance

Note : This is not a stock recommendation , it is a suggestion view only and you can consult your market advisor before investing . 

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Hope , in this article you get to know what is the right way of investing in stock market and how you can can do wealth creation in long term with small amount of investing .

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