‘What’s the secret to make a fortune in Stock Market Investing ?’
A question experts at Futurecaps are often asked & that is why we decided to answer it in detail today.
This article covers every aspect of stock market investing & explains how the well known stock market celebrities built their fortune. Moreover, we will also bust few myths which have been floating around from a very long time.
Stock Market Investing Secret Revealed
From Warren ‘Wizard of Omaha‘ Buffet to Indian superstar investor Rakesh Jhunjhunwala, every single investor has a different theory & strategy to perceive markets but a common factor among them is they all have made their fortune by ‘Doing Nothing’.
Doing Nothing over here implies being patient & in control at all times. Undoubtedly all these legends have spent their lifetime studying & understanding stock market movements, however history is witness that even the most seasoned investors have seen a downturn due to impatience.
We advocate the importance of patience so much because not only that prevents any wrong move due to emotional roller coaster one goes through when their stock price moves aggressively but also ensures you gain maximum benefit from it.
Moreover, why would you like to spend hours & risk your capital everyday when you can earn much greater profits without doing anything ?
Stock Market Investing Case Studies
Best financial advisor is the one who can prove what he claims & that is why we would like to show you our previous multibagger calls that grew investors’ capital multifolds while they were enjoying their life.
Recommended in the year 2013, Futurecaps experts caught Bajaj Finance future potential before anyone else. Result was whooping 1000% return to our investors.
Caplin Point Laboratories multibagger was recommended in November 2019 by Futurecaps after a strenuous research.
Our experienced & talented Market Research teams hard work paid off when the stock gave astonishing Return On Investment (ROI) of 200%.
Recommended in 2020, another of our intensive research paid off & our investors have already earned a 100% return on their investments.
Stock Market Investing vs Trading
As promised in the beginning, we are here to bust few myths which have been floating around about Investing being a long & boring game that will make you fortune when you can’t even enjoy it.
Traders advocate that its better to be liquid & enjoy your gains instead of keeping your hard earned money parked, however this is entirely the other way around.
First of all looking at the case studies above you can clearly observe that most of our calls gave more than 100% returns within months, therefore the claim above become irrelevant. For the rest we will explain through an example which made us at Futurecaps highly motivated to take up investing instead of trading.
Let’s take two individuals Taran the Trader & Inder the Investor.
Taran is a day trader who focuses on gaining 2% return each day through price movement & swing trades. He benefits from volatility & has to ensure he doesn’t move away from trading screen until he has squared off all his positions.
Due to high volatility & emotionally demanding trades, he often is suffering from anxiety & takes anxiety medication everyday.
As per the reports, even the best traders around the globe are only right 60% of times. Which means 40% of his trades are losing trades & an average retail trader has around 40% winning trades.
Considering his Risk-Reward ratio as 1:2 if he does 100 trades a month, he has 40 winning trades which means he made Rs.80 but has 60 losing trades resulting in Rs.60 loss. Therefore, his net profit in an ideal month would be Rs.20 in an investment of Rs.100.
Moreover, the above calculation is considering ideal situations but stock market is never ideal as position exposes Taran to more risk.
On the other hand, Inder spends time with his financial advisor once a month & discusses the stocks that are suitable to buy consider the present market situations & future growth.
He focuses on buying company stocks with good fundamentals & doesn’t look at price movements at all. He lets his financial advisor track his portfolio & he himself works hard in his high paying dream job.
He stays healthy & goes on vacations with his family from the dividends he earns through his investments.
Now we leave the decision on you. Which one would you like to be ?