the ultimate guide to short term trades you would ever need
Taking short term trades are not that simple. We are going to discuss today how to correctly trade in the short term. Also, I am going to share my personal experience with you in this article.
Do not invest on High value stocks:
As an example, if you invest $1000 in a stock, it would take another $1000 to double its price. Nevertheless, if you buy a share for $1, it would take only $1 more for its price to double. so, you would double your money in less time by investing in the low-value underlying stock. My advice is to take a look at its fundamentals before investing.
try finding trending stocks:
This is my personal experience and the Technique of famous investor Rakesh jhunjhunwala.
Look at this image.
I bought this stock when it was in trend at $0.14 and this week high is $0.34. So, this means that I have doubled my money in less than a year.
News affects a lot even when it’s not true. now look again at this image.
this is the graph of DHFL (Dewan Housing Finance Corporation Ltd) and the big fall from $9.05 to 3.72 in this chart was due to a piece of news. and the news was, The CBI on Wednesday uncovered a trick connected to the Pradhan Mantri Awas Yojana (PMAY) and enrolled a body of evidence against Kapil and Dheeraj Wadhawan, siblings who are advertisers of emergency hit Dewan Housing Finance Limited (DHFL) and are in prison over extortion and illegal tax avoidance charges.
Some people were devastated to hear this news.
price-to-earnings (P/E) ratio:
This is the most ignored topic for most of the investors who lose money on short trading.
The P/E ratio represents the ratio between price (P) and earnings (E). A good PE is below 15. Also, try investing in stocks below a PE of 10, this is my favourite range.
frequently asked questions:
Which share is best to buy for short term?
currently, I would suggest investing in Tata Power Company Ltd.
What is the most successful trading strategy?
MACD and MV indicators set to 20 days is the best for short term trading.
What are the best stocks to buy for beginners in 2021?
Nonsense question but still I would suggest you invest in Fast-moving customer goods sector.
Investment/Trading in the securities market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equities, Derivatives, commodities and Currency can be substantial.
These are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.
Please ensure that you understand fully the risks involved and do invest money according to your risk-bearing capacity.