Hello Guys, right this moment we are going to talk about –Time Value Of Money In Financial Management
80% of traders and Investors within the Indian Share market lose cash. Because Money Management doesn’t observe the approach.
Just assume I ordered you to cook dinner 1 kg of rooster. You by no means know the way a lot salt, pepper, onion, and so forth will fall into this recipe.
So with out information all the things is dangerous.
Yet some traders and Investor know Trading Technique and know how you can look for prime quality shares.
But sadly they’re earning money and they’re dropping cash. They aren’t able tp saving cash. However, Money Management is a key a part of the Share market.
And Money Management helps preserve your cash protected and safe in the long run.
So right this moment I’ll clarify intimately about Money Management.
I encourage you to stick with us.
Importance Of Money Management
Money Management within the Share market is – investing cash in the fitting time + the fitting worth + the fitting shares.
Just apply these guidelines, I’m positive you’ll by no means lose cash on this market.
Rule No. 1. Do not spend money on particular shares.
See Share market is each a enterprise, revenue and loss, nobody can say 100% Confirm that the Share will rise. You could make an estimate by evaluation, the shares will enhance or lower.
If one can say 100% the share will enhance. Then he’ll turn into the richest man on the planet. He will make investments crores of rupees out there and earn crores of rupees from the market.
If it was really easy to earn cash, everybody would turn into a millionaire from this Share market.
There is a rule, suppose you’re buying and selling ten occasions a day. If you achieve seven occasions and lose thrice. Then on the finish of the day you will note that you’re in revenue.
Avoid Invest Full Money on Single Stock
What many new Traders do is make investments all the cash collectively in a sure Share.
If for some cause the evaluation goes incorrect or unhealthy information comes out there then the Share is pressured to learn and there could possibly be a giant loss for you.
What do you do then?
For instance, you’ve gotten one lakh rupees in your account.
You divide it into 3 to 4 and spend money on shares of 4 totally different firms.
If for some cause the shares of two firms provide you with a loss, then the opposite two shares will provide you with a revenue.
It known as Money Management in English.
This can result in losses if you don’t observe the foundations.
Invest on Nifty 50 Stock
In earlier articles we’ve got defined about High Beta Stocks, Nifty 500 Stocks, Small Cap and Mid Cap Stocks, Penny Stocks.
We know that Nifty 50 is the Safe Category of the Share market, so if you wish to preserve protected cash 100%. But select shares from Nifty 50.
Currently Nifty’s 50’s share worth is larger. However you’ll be able to analyze on these shares, discover the place of the Share and transfer on. And keep in mind to not spend money on single particular shares.
You are studying Time Value Of Money In Financial Management
Stock Sector Wise
Procedure 2 Select Stock Sector Wise.
- Top Sector List –
- Steel Sector
- Pharma Sector
- Media Sector
- IT Sector
- Motor Sector
So spend money on Bank Sector shares like HDFC, ICICI, Axis. You can select shares from IT sector Reliance, Mindtree, Wipro, Infosys and so forth.
So Sector Wise is likely one of the greatest methods to handle your funding.
Process 3 – Invest on Mid Cap & Small Cap Stocks
You know that almost all Investors spend money on Mid Cap & Small Cap shares. Because Mid Cap and Small Cap shares provide you with 3x-7x-10x revenue returns in a Small time period. (Example)
So you have to create a sensible portfolio for Mid Cap & Small Cap shares. That’s all
Depending on Fundamental Analysis. And remember that mid-cap and small-cap shares are at larger threat. So purchase small Qty on totally different shares. We can even name them High Beta shares.
And please perceive the distinction between Trading and Investing. Trading each Intraday and Swing.
Investment means holding the Share for at the very least 6 months.
So if you wish to enhance your wealth, maintain on to six months to 1/3 yr.
4th Process is – Nifty 50 Cycle
One of the commonest and easy processes is the Nifty 50 Cycle Strategy. Follow the 52 week excessive and 52 week low Share of Nifty 50 shares.
The massive analyst says that the Share has made a 52-week low within the Nifty 50. That Share will attain a 52-week excessive within the subsequent few months.
Again, all of the shares which might be at present buying and selling on the highest costs will attain the bottom costs within the subsequent few months.
So you may make long-term investments in shares which might be buying and selling on the lowest costs.
This known as the Nifty 50 Cycle.
Follow – Above This Money Management Tips
If you Want to read In Hindi Click – Money Management Tips In Hindi
Time Preference For Money In Financial Management
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I’ve added the detailed hyperlink of the course under.
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