For the demonstration of the plan, we will use Paytm Money as shown below.
The fundamental idea is to contribute in the all the companies list on the stock market starting from Low to High. The logic to back up this idea is you really don't know the fine details of the companies.
Infact, the firms which are popular have no certainty in their stocks.
Plus you're a beginner and you are feeling an intense desire to invest in stocks.
The usual trend is to ask many people and many experts about the stock marketing. Some of them could be Gamblers, speculators, Gainers and Losers. Each person would give you a different plan based on his experience or his uncle's experience.
Moreover there is a generic advice running in India that you should invest only surplus amount of mony in your stock markets. Now, what if that 'Surplus amount' never happens in your life.
We at moneykuxion wish you luck that you enter the market without any fear, greed, hatred or bias. May your education, experience and later on 'Excess cash' guide your moves.
The Empirical Plan for Stock Marketing
1. Buy Two Shares of Each Stock (I've attached an Excel to make this easy for you)
Caution : To implement this approach for the entire stock marketing landscape, you will need a sum of 30,00,000.00 i.e 30 Lakhs (0.3 million) for 4000+ stocks in the excel sheet.
If this is not feasible for you then please use "split and win" approach. i.e divide the market stocks in groups of
1. Below ₹ 100.00
2. Between ₹ 100.00 and ₹ 500.00
3. Between ₹ 501.00 and ₹ 1000.00
4. Between ₹ 1000.00 and ₹1500.00 and so on.
2. Between ₹ 100.00 and ₹ 500.00
3. Between ₹ 501.00 and ₹ 1000.00
4. Between ₹ 1000.00 and ₹1500.00 and so on.
So, when you buy all the stocks below 100.00, 2 positive things would happen.
You would be holding shares and partial ownership in these firms. Secondly, you will get to know about - 'ASM' and 'GSM' i.e. some stocks are not recommended to be invested in. That would work as a filter for you (which is already being done) in the 'Google Sheet of Stocks Under 100.00 (Cleaned)'
A good approach is to start with a seed amount.
For example. Let us say to understand, your seed amount is "Rs 500.00", Then purchase 2 shares of all the stocks that you can do so with your seed amount - 20%. i.e Buy shares with Rs. 400.00
Now, you're buying the share with an intent of investing.
The popular idea of "Buy low and Sell High" would work in this point of time. Whenever you see a percentage change of more than 8%. I recommend you to buy or sell shares with the remaining 100.00
This in turn is expected to make your investment profitable very soon.
2. Your intent should be to go through the names of the stocks and prices from low to high.
3. Do this over a period of time as you tend to complete your Portfolio of 4000+ stocks.
At the end of your Empirical Journey, you would be having ownership in more than 1000 companies listed on Indian stock exchanges like NSE and BSE and a demonstrable account under your belt.
This plan lets you orient yourself towards learning and demonstration. It is not intended to give you huge profits and make you short of your breath with great loses. 'Fear' and 'Greed' are kept at the bay.
Thank you so much for reading this stock marketing plan. Hope it helps to overcome your fear of stock marketing.
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