It is extremely important to go through the below paragraphs carefully to understand how to approach the markets using our recommendations. Please be patient while you go through them. It’s IMPORTANT!
How should I play the stock markets and make money ?
Your portfolio should have only 10 stocks at any given point in time. Invest only 10% of your entire capital in each stock. Go on buying as and when we recommend stocks till your 10 counters are ready. Now go on following these 10 counters strictly after the market has closed. Suppose 2 counters have triggered stop loss (or they are not performing since a long time,) exit them the next day. Replace these two counters with 2 fresh recommended stocks from us. Now, once the counters start rallying, you must exit all of them the day you see enough profits which will help you achieve your financial goal (if any). However the disadvantage of this strategy is that it demands a lot of buying-selling as a result of which, effectively you could end up in losses. Now, if you do not have a financial goal then we strictly recommend you to follow exit strategy (https://www.abundancestockadvisors.com//training/exit-strategy/) on all the counters to exit them. Keep holding these counters as long as the exit strategy doesn’t tell you to exit. This strategy has the following advantages.
- You take maximum profits from any stock when it’s rallying, rather than selling on just 20-30% gain. By holding onto winning positions, you avoid frequent BUY-SELL and overtrading. This reduces your overall risk of losses. Note that every time you take a fresh position, there is a risk of stop loss triggering associated with it. Also the more you BUY-SELL, the more are your chances of losing money. It’s best to be patient and disciplined with winning positions.
- Your emotions, instincts and market volatility which often leads to losses and wrong decisions is out of the equation. You exactly know when to buy and when to sell (using the exit strategy mentioned above)
- There is no need to time the market. The markets are always right and so are you.
- Proven strategy that really gives you a very good chance (no guarantee though) of making money in the stock markets.
Once you have booked profits by exiting a few counters using exit strategy, again take fresh positions to fill up the 10 counters.
Note: Once you start receiving our recommendations, initially start with a very small capital amount. Spend some with our recommendations and the markets. You will gain good experience in a while. Once you start getting confidence, you can then increase your portfolio size. Remember, the experience and attitude you will gain with small amounts, you will carry the same when you significantly increase your portfolio size. Hence it makes sense to get your hands dirty with small amounts initially.
What should be my Exit Strategy?
- In a one way bull market:The exit strategy https://www.abundancestockadvisors.com//training/exit-strategy/ mentioned in the above paragraph is the most efficient way to exit a counter. Watch your portfolio only twice a week, select any two days say Tuesday and Friday. Ignore all those stocks which are moving UP. Now if any stock you feel is not performing since a while or is consistently moving DOWN week after week, go and check the exit strategy for this stock. If the strategy tells you to exit, go ahead and exit. Else hold. To summarize, exit strategy should be seen only for those stocks which are in RED and are consistently falling for a while. It should not be seen for stocks which are moving up and are in green. The idea is to take maximum benefits from stocks which are rallying and at the same time exit from counters before they trigger a crash.
- In a consolidating/sideways market:The strategy to exit in sideways market would be to exit a counter when decent gains are seen. Book profits and renter the counter. Once you have re-entered it, follow the method of trailing stop loss to exit. Note: This strategy should be followed only if you take a new position in a sideways market. If the position is an old one, exit strategy mentioned in point 1 should be followed no matter in which direction the markets are moving.
Despite the above two strategies, you must never ever allow a profit to get converted to a loss.
How should I follow stop loss?
Stop loss for ‘Delivery’ recommendations should be followed on a weekly closing basis i.e. check the price of the stock at the end of the last trading day of the week (mostly Friday). If stop loss has triggered then exit. Stop loss for ‘Momentum’ recommendations should be followed on a daily closing basis.
For ‘Momentum’ recommendations follow stop loss only for 6 days from the day the stock has been recommended. If the stop loss has not triggered, then ignore the stop loss and go on following exit strategy (as mentioned in point 1 of the exit strategy) to exit the counter. Similarly, for ‘Delivery’ recommendations, follow stop loss only for 5 weeks from the day the stock has been recommended. If the stop loss has not triggered, then ignore the stop loss and go on following exit strategy to exit the counter. This may sound painful but our experience says that if a stock has to perform or trigger a stop loss, it will do so in the first few days. So practically you may never have to wait for weeks to know its status.
What else do I need to know?
- Please follow the 10 Mantras on our website https://www.abundancestockadvisors.com// strictly.
- We will intimate you once we send you our very first recommendation. You will be required to confirm the receipt of the same. Please be patient till then.
- Once your subscription has commenced, spend some time with our recommendations and see how they behave for few days. You will get a hang of their behavior and you will soon come up with your own good strategy to handle them. Till you gain some experience, commit smaller amounts on the trades that you make.
- Please follow the weekly market view published on our website (under the ‘Weekly Market View’ section on the right hand sidebar) every Monday to get a hang on the market behavior for the week. Take positions only after going through the weekly market view. This is important.
- Do NOT trade in F&O till 2 months starting from your service start date. You will certainly receive F&O recommendations as well, but you must have certain experience to trade on the basis of our recommendations before you start taking F&O positions. Also, F&O positions must be taken only once your 10 stocks portfolio has been created. Till that time stay away from F&O. You should trade in this segment only if you are a high risk taking investor. If you are a retail investor, we would want you to stay away from this segment as it’s difficult to frame a strategy to trade in it.
- Do not follow the stock market on a minute to minute basis. Remember it’s as addiction which can lead to losses. After taking a position, you must watch it only after the market closes to see how it has performed. YOU are more important than the stock market!
- If you are already making money in the stock markets with your own good strategies, then just stick to them. Ultimately, it’s about making money. If not, then follow us.
- Patience and discipline are the keys to make money in stock markets. If you don’t have them, stock markets are not for you. Stay away.
- Have realistic expectations. Investment in stock markets come with certain risks attached to them. There will be times where you will have to take losses as well. Please go through our article “Who Should Subscribe To Us” here https://www.abundancestockadvisors.com//pricing/ at the bottom of the page. It will just set the expectations right.
- Money is not earned. It is attracted! Follow the mantra-10 religiously. You will not just have money, but will have ‘Abundance’. Remember, you need to be a little lucky as well in the stock markets.
Am I missing something ?
- We recommend stocks only when we find them suitable for you to make money. Thus, we might not send recommendations on a daily basis. If you do not receive a recommendation email from us at night, it means we did not have any recommendation for that day.
- Please send us an email if you have any queries. All queries should be addressed only to firstname.lastname@example.org. 99% of the times, you can expect a response from us the same day. Email is the best way to reach us.
- If at any point in time, you do not receive our recommendations for consecutively three weeks, please write to us regarding the same.
We wish to thank you for giving us the honor and privilege to assist and serve you in your endeavor in the stock markets. We value this relationship and assure you that we will not let you down. We wish you all the very best!