All those who are working hard out there to make money have three important questions lurking at the back of their mind every time, all the time.
- When can I stop working and start relaxing?
- How can I stop worrying about money?
- How can I make more money from the money I already have?
Have you ever imagined that you could make your money work for you instead of you working all the time for money?
Wondering how? Well, Stock markets is the answer!
Making Your Money Work For You Through Stock Market
Stock trading is a surefire way to make your money work for you. You can create a decent sum every month by trading in the stock market. Whether you are a beginner or a trader, you can do this by studying the market well. Now you might probably be thinking about those who have incurred losses from stock trading. This usually happens when someone starts trading in the market before gaining an understanding about how the stock market works and the basic behavioral psychology. Often those who incur losses are the ones who blindly follow others’ recommendations without trying to learn the trade. A well-studied, calculated investment will never disappoint you.
How To Study The Stock Market?
There are two simple ways in front of you to study the market.
- Fundamental Analysis
- Technical Analysis
Are you someone who likes to look at figures, reports, growth rate, and the like? Then fundamental analysis is for you! All you need to do is to make an informed decision by going through the important reports of the company. These include:
- Balance sheet
- Financial reports
- Annual reports
If you make an informed decision in this way, then you can make your money work for you by earning a good sum of money every month effortlessly.
But what details you should look for in those reports? Here are some of them:
- How much business the company is adding every year?
- How much profit is it making (after tax)?
- What is the price-earning ratio?
- How much debt is it currently having?
- What interest does it pay on its loans?
These are the factors that would give you a quick and clear idea about the company’s performance.
How Does Fundamental Analysis Help?
Now let us look at how fundamental analysis helps you to make your money work for you.
- Predict Future Performance:- The details mentioned above will give you an idea about how the company will perform in the future taking into consideration the present economic situation.
- Calculate Intrinsic Value:– This type of fundamental analysis will help you to find out the intrinsic value of a stock which is a key factor in making long-term investment decisions. Intrinsic value is the value of the company that you perceive by analyzing the financial reports and statements of that company. This is a very subjective value and may differ from the actual market value of the stock, but with clear analysis, you can make gains by buying an under-valued stock and then waiting patiently for the price to go up.
But what if you don’t belong to the category of those who likes to go through financial reports? Don’t you worry! You may look at more technical stuff like charts, trends, patterns, etc. Here, statistics play the major role. Based on the statistics displayed in the charts, you can determine the pattern of growth of a company and thus predict it’s performance in future and make your investments based on that.
We work as a stock market coach and will help you to make such technical analysis by teaching you how to trade in stocks. In addition to that, we offer you continued help in the form of stock tips and expert advises. Look at the image below and understand how our expert advice helped traders and investors to earn a good sum.
Example: Chart of “CRISL” share
The image is that of a credit rating company called CRISL whose present features are:
- CRISL is virtually debt free.
- The company has a good return on equity (ROE) track record: 3 Years ROE 33.12%
- It has been maintaining a healthy dividend payout of 56.72%
However, by simply seeing the above features if an investor would buy the shares of CRISL, he would be incurring a loss.
Look at the image below. We have given this update on our weekly commentary to clients.
The old chart of stock dated January 2017
The present chart of stock dated December 2017
As you can infer from the charts, the share price of the company dropped from 2277 to 1800, which is a significant drop of 20%.
The company was doing good, but the old level (2277) was not suitable for buying. It was at a resistance and there occurred some selling price action patterns which are known to our clients. We have clearly mentioned in the analysis that the share price may go down. As a result, our clients could make the right move at the right time. You can read the comments written inside the chart. In fact, trained professionals know that it is an opportunity for making money by ‘short selling.’
We provide continued support in this manner so that you can take wise decisions based on technical analysis. This will help you to make quick money without incurring huge losses. Stock market is the only place where you can make money from rising market and also from falling market. It is a two-way business.
Example: Chart of “Datamatics” stock
Let us take another example. This is something that happened a few weeks before. Most people followed our weekly commentary made money.
Stock price of Datamatics was at 115 on November 13, 2017
Stock price of Datamatics went to 136 on November 20, 2017
Clients who took this made 18% returns within 2 weeks; i.e, those who had invested INR 1,00,000 made INR 18,000 in just 1 week!!
Hence, it is not what you are buying alone that matters but when you are buying too. This is where technical analysis comes into play.
The Bottom Line
As you can see, to make your money work for you is no rocket science. The most noteworthy point is to familiarize yourself with the basics of the market. In addition to that, make good use of our expert training and mentoring. The result? You can create a good secondary income every month. And the effort you put in this is less than what you need when you work for money!
So, do your homework, invest in the market, and just sit back and relax and make your money work for you! If you need to learn the techniques of stock market, stock trading, futures and options please contact us for the mentorship and training details.