What is the rich people’s investment strategy?
April 1, 2021
The nutshell of investment is how fast doubled your money and, what was the initial investment? A rich Guy before making any investment looks at
Nifty is 1085 points up since opening for November month, at the time of writing this answer.
Today is Diwali , Saturday 14th of November.
Nifty closed at all time high.
Did you know,
Nifty never made a closing above 6.8% in November month till date. This means we should expect nifty to close below 12600 by end of November month.
Ofcourse, records are to be broken.
Did you notice how Nifty fell 8 % in 2011.
Now In 2016 read carefully,
Nifty fell from 8653 till 7916. This is a damn 8% fall !! This is not shown in the above table.
However if someone took a calculated risk and made a buy at 7916 levels , “hoping” that worst 8 % crash is the limit on downside….
The 2016 November ended at 8224. This is a cool 300 points rally from its bottom to close at 4.95% for the month. You made 300 points profit as a reward for taking that risk.
For nerds; 300 points in Nifty Futures means 21,000 rupees against 1 lakh margin. This is 21% returns.
Similar line of thought , action for this month could be as follows…
Go short with a hope that , 13000 would not cross and close in November month. This is the stoploss level. This is 220 points away from current market price of 12780 (14th November 2020)
We hope Nifty will end at just 7 % up for the November Month. This means Nifty should close at 12500 for November Month. This is 280 Points down from present levels.
Now probability of a 10% rise in Nifty does exist. At moneydhan we always believe is asking for data as proof.
Notice how many times nifty made more than 10% rally in a month historically?
It is 7 times.
If nifty crosses 13000 in November 2020, ( next 2 weeks) That would be its 8th time. Not just rally above 13,000 but it must close as well.
This is how you can gauge that risk on short is lower w.r.t chance of winning with a short. Do comment what was the November 2020 close once November ends 🙂
Btech in Information Technology followed by an PG in Financial engineering & Risk Management from National Institute of Securities Markets. Certified Investment Advisor XB, FRM (USGARP) .
The nutshell of investment is how fast doubled your money and, what was the initial investment? A rich Guy before making any investment looks at
Introduction Let me give it straight to you. Today is October 2022. Wipro is 40% down from its all time high. I am going to
Inflation going up forces banks to raise interest rates. Higher interest rates causes bond prices to fall.But inflation was never an issue since past 30
It is not hidden from anyone that the IT sector is one of the most crucial sectors of the Indian industry as well as one
Post expense ratio and churning, Mutual Fund cannot achieve your financial goal.
Moneydhan Investment Advisory India LLP
SEBI Registered Investment Advisers Registration No. INA200016193 (Type of Registration- Non-Individual, Validity of Registration- Perpetual)
7/433, Alumavunchodu, Thankalam, kothamangalam, kochi, Ernakulam, KERALA, INDIA – 686691
Contact No: 91 8480005564,
Email: sujith@moneydhan.com
Principal Officer: Mr. Hardeep Shantaram Korde, Contact No: 91 8480005564, Email: moneydhanadvisor@gmail.com
Warning: Investments in the securities market are subjected to market risks. Read all the related documents carefully before investing.
Disclaimer: Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The securities quoted are for illustration only and are not recommendatory.
