HOW TO INVEST PROPERLY IN STOCKS | 3 Steps | Market MagicNSE:ZENSARTECH
INVESTMENT OF THE WEEK | HOW TO INVEST PROPERLY | with MARKET MAGIC & Tradingview stocks.
Step 1. Diversify. Divide your capital in parts. Use different Demat accounts for investment. Dont put all your eggs in 1 basket. In TradeWorld1 | Market Magic Portfolio We diivde capital in 3 parts least.
50% Long term investments 40% Short term swing trades shared daily on Tradingview. and 10% you can keep cash or invest like in crypto or gold or any new opportunities.
Step 2. Bet Small. Dont invest more than 2% in 1 stock . Small Size Big Returns our style of working. Small size helps you be in focus and controlled state of mind .You make more logical decisions and less emotional mistakes.
Step 3. Lose less. Cut your losses quick. Small Size helps you do that. In heavy position size trades it becomes difficult to cut big losses. so Never let it be big in 1st place. Trade small Lose small. Be logical in markets. Focus on process not on profits.
Our investment / trade philosophy is less about strategies and win rate and more about money management and position management . Normal and simple investment setups can make you sufficinet income if you focus on process . Money management and position management are real keys of success in markets.
Whats your view. share your thoughts in comment box. This is 2nd Blog of Earning with Learning. Education Series . If you like this initiative we might continue it every week.
Happy Investing. Keep Earning and Learning.
TradeWorld1 | Market Magic.
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MARKEY CYCLES PSYCHOLOGY | EMOTIONS & COGNITIVE BIASES
All markets go through cycles of expansion and contraction.
📈When a market is in an expansion phase (an uptrend), there is a sentiment of optimism, belief, and greed. Typically, these are the main emotions that lead to a strong buying activity.
Sometimes, a strong sense of greed and belief overtakes the market in such a way that a financial bubble can form. In such a scenario, many investors become irrational, losing sight of the actual value and buying an asset only because they believe the market will continue to rise.
They get greedy and irrational by the impressive bullish movement, expecting to make huge profits. As the market gets heavily overbought, the local top is created. In general, this is considered to be the point of the highest risk.
In some cases, the market will start a sideways movement while smart money steadily sells the asset. This is also called the distribution stage. However, some markets don't present a clear distribution stage, and the downtrend starts sharply after the top is reached.
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📉 When the market starts reversing, the euphoric mood can quickly turn into complacency, as many traders refuse to admit that the uptrend came to an end. As prices continue to fall, the market sentiment quickly moves to the bearish side. It often includes feelings of anxiety, denial, and panic.
In this context, by the anxiety we mean the moment when bullish biased market participants start to question why the price is falling, which soon leads to the denial stage. The denial period is marked by a sense of unacceptance. Many investors keep holding their losing positions, either because "it's too late to sell" or because they want still believe that "the market will come back soon."
But as the prices drop even lower, the selling wave gets stronger. At this point, fear and panic often lead to what is called a market capitulation (when holders give up and sell their assets close to the local bottom).
Eventually, the downtrend stops as the volatility decreases and the market stabilizes. Typically, the market experiences sideways movements before feelings of hope and optimism start arising again. Such a sideways period is called the accumulation stage.
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9 Smart Money Habits of Warren Buffett That We Should All Learn 9 Smart Money Habits of Warren Buffett That We Should All Learn From
How to be like Buffett How did the investor become the third-richest man on earth? With very a disciplined approach to money. Here's what we can all learn from the Oracle of Omaha.
1. Think like an entrepreneur
Buffett filed his first tax return at 13. Even as a child, he was always looking for opportunities to earn, beginning with a paper route and selling soda and gum door-to-door.
2. Live below your means
When he's "not feeling prosperous," Buffett chooses a $2.95 McDonald's breakfast instead of a $3.17 one. You don't have to go that far, but spending less than you earn is a really good idea, if you can manage it.
3. Love compounding
Buffett tells the story of a man who bankrupts a king by asking for one grain of wheat on the first square of a chessboard, 2 on the second, 4 on the third, and so on. Buffett loves the way compounding makes investments grow exponentially.
4. Learn all you can
He spends most of his time reading, learning everything there is to know about the markets and companies he invests in. The more you know, the smarter choices you can make.
5. Look for bargains
He built wealth by finding companies that were undervalued by the market. Buying assets for less than they're worth and holding on to them until prices rise is a great way to get rich. But it takes study to spot these gems.
6. Think (very) long term
One rarely discussed secret to Buffett's success is that he buys quality stocks and holds them for a l-o-o-o-n-g time. He still hasn't sold the stake in American Express he acquired in the 1960s, for example.
7. Don't buy until you're sure
Unlike baseball, in which a strike may be called even if you don't swing, investing is a "zero forced strike" game, Buffett says. So don't get pushed into making an investment before you're really sure it's right.
8. Don't follow the herd If you do what everyone else does, you'll get the same results they do.
Buffett tells investors to be "fearful when others are greedy and greedy when others are fearful." In other words, the day after a stock market crash is a smart time to buy.
9. Safety first Buffett's investing Rule No. 1 is "Never lose money." No. 2 is "Never forget rule No. 1."
He means: Don't take big risks looking for big rewards. Pick sound investments, and hold them long term. That's what made him a billionaire.