If you are investing in your 20’s then you are on the right path because this investments give you a huge returns in future (long term investment). Without wasting time lets discuss this 5 ways of investment that top 1% investors never tell you.
Analysis of Stocks:
Analysing a stock is one of the best way to keep best one in your bucket but, the right time is very important. In financial world the 2 things are very crucial for every investors that they should follow them the no.1 is right stock and no.2 is right time.
Choosing a perfect stock to achieve your financial goal is very difficult but, here I am showing you a top ways to analyse your perfect stock.
There is 2 most traditional ways to analyse a stock no.1 is technical analysis and no.2 is fundamental analysis.
Technical analysis: Technical analysis is best for those who are investing for short term period. short term means holding a stock for leass than 1 year. so, mostly technical analysis includes candle sticks, charts, indicators etc.
Fundamental analysis: Fundamental analysis is my personally favourite and not only me but those 1% investors also prefers. Additionally, fundamental analysis includes reports, company balance sheets, quarterly reports, annual report etc.
Diversified and Focused Portfolio:
Most of investing sharks prefer to do diversified portfolio but, there is advantage and disadvantage for both the type of portfolios.
Diversified portfolio gives you a wide range of point of view to manage your portfolio, also it is help you to balance your P/L ratio. Profit and loss ratio is based on your return against your losses. Diversified portfolio contains different types of industries majority including IT, Manufacturing, Telecommunication and Auto. It is depends on your research and study that how your portfolio looks like.
There’s also a negative side of diversified portfolio that may lead down your profit of portfolio. Due to diversified stocks the portfolio may unbalanced in critical situations which causes heavy losses for you.
Focused portfolio is one of the best option to the investors who are investing for short term only. Focused portfolio contains only a sector oriented stocks like only IT or Telecommunications.
Focused portfolio are pretty straightforward point of view on the global level. It is very robust version than diversified portfolio because it may gives you a too high or too low return.
After Covid pandemic the IT sector stocks was did a great performance on global level.
Investment Holding Period:
Holding investment more than 1 year can give you a moderate benefit, but do not expect more than that because the investment is thing which is not judge by holding less than 5 years. See, every company take a time to expand and grow and as they grow slowly the price of share will increase so, While investing the 1st rule is don’t panic if you are looking to invest for long term.
In this blog I already gives you a detailed information about how to analyse stock by using technical and fundamental method so, using this techniques may gives you a best investment strategy to make your top notch portfolio.
LTCG (Long term capital gain tax), if you holding investment more than 1 year then your are reducing your taxes on the investment return.
Some investors prefer to do investment by setting there goals and others are just holding without goals so, doing investment without goal is like “live without emotions”.
In conclusion, if you looking forward to get huge returns and achieve your future goals then you should need to hold your portfolio minimum 5 year and more. This investing strategy gives you a High ROI along with compounding effect.
Magic of Compounding:
As we have discussed the Investment holding period in above paragraph. So, the holding period and magic of compounding have a strong bonding to each other and if you respect the time then you are king of your portfolio which will give you the huge ROI (Return on investment).
‘Warren Buffet’ this name surrounds if you looking to magic of compounding. In the world of investing he plays very vital role which represents that what he does to change the world of investment and People point of views.
Return on return all shows the magic of compounding but, this all things will happen after holding 6-7-8 years of investment. This is like do investment and forget about it that you have invested before.
Compounding is the prize of your efforts which you have put in to holding your portfolio and having this much of patience.
Patience is a thing which brings you to the top and make you a best one in your era. that’s why those 1% of investors tell everyone and each time to have a huge patience is sign of success.
Stay Updated:
News, Podcast, YouTube Channels, Social media and more this are the ways that can help you to stay in touch with the current market situations. So, listening daily podcast may help you to choose a right stock, Daily News Reading may help you to stay aware about market frauds and internal financial news also keep you aware about your investment.
YouTube Channel is one of the best source which I have ever seen before. So, try to visualise your dream through YouTube and follow appropriate channel which will help you to achieve your financial goals.
Pretty Straightforward, If you use social media in right way then it may leads to add level in your investing knowledge. Because, my father says “having a investment knowledge is a blessings of holy god which is really a extraordinary”
In conclusion, try to research as much as possible to calculate and recalculate your portfolio using analysis. Have some patience while investing but do not give up in crucial situations.
We have seen, After covid pandemic there is huge dramatic change in the investment world that now people like to invest there money in stock market.
At the end I wanna say that follow right path and research for your self and your portfolio. God Bless You !