How actually I do trading or investing in stock market? Please connect with the previous post before reading this one. This will help you about understanding this post very well. In stock market there are different company shares which you can trade and invest. But the shares are limited and the good thing is that money flows within these shares only.
This is not like #Crypto market where new coins are being launched in daily basis. The number of coins exceeds the upper limit, there are thousands of coins which are being traded in the crypto market. Money flow is confused here, no one is confidence about his investment.
With every launch of new coins, investors head towards those ones leaving the old ones. New coins whether they are just scam or useless project still get Billions of volume, Whales force you to come to new coins leaving the old ones and in result no price rises in the old strong coins.
Project onwers are holding the coins only and whey they pull out hand of compassion, then you will see a crash like Luna, FTX, KDA and many more projects. To be honest the charm is over in crypto, market is very large but number of investors are less, with every new coin being launched money flows there.
The coin pumps for some days and a rugpull is done. Investors cry and company enjoys the scam. This is nowadays the situation of the market. That is why I prefer stock market now, this is because there is no such situation that new shares come in the market on daily basis.
There are limited companies in the country and their is a competition between them, every company tries to make their sale and profit better which in result help the share grow better. There is no such mechanism that daily new shares enters the market rather there are limited shares and the money flows in them.
This time my strategy in stock market is more simple and profitable. I will find 4 best stock shares which offers 12% APR dividend. Let say "Efert, KAPCO, MTL, OGDC" are sharing good dividends on quarter basis. I will keep on checking their profit raio, sale and company performance on weekly basis. If I see progress I will remain invested if incase of decline I will leave the share.
The strategy is simple. I will invest 50% of the total amount in 4 shares in equal parts. Will never look for profit taking nor I will sell. Rather I will keep on rotating the shares with each other. Checking the RSI of every share, lets say EFERT reaches 70RSI, I will convert the whole amount into the other share whose RSI must be below 45-40.
I will keep on doing conversion and will increase the quantity of share. Increasing the quantity have two benefits, one that dividend profit will increase and the other that my buying average will come down.
What with my remaing 50% amount? This will work as security. When I see any share that is down and the RSI reaches 30-20, I will invest the whole amount in it to give a support the first investment layer. With small recovery, meaning RSI reaches only 45, I will sell back and keep the 50% cash.
I will try to keep (the other 50% amount) with cash all the time which is just used for the purpose of security. This will help me get out of the hard crash and to get out of the losses. This is very simple and safe strategy. I think the APR will be around 36%, which is amazing. I will give a try and will let you guys know about the strategy. Will discuss with the broker if they have API keys so that I start making bot as well.
I hope you guys will like this post and is interesting as well. If you find it informative then dont forget to give me a support. Share you reviews in the comment section below. Those who will interact will get my 100% upvotes. My staking is increasing. Thank you all for your time reading the content.
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