Be the wealth creator


I will talk about trading in this blog. But before that I would like to share few tips of Mr Robert T Kiyosak, the author of the famous book "Rich Dad Poor Dad".
He said the best way to create wealth is to diversify your portfolio, do all the following:
1. Be the best performer in your job and get the highest hike and fattest pay check
2. Invest in real estate not just for staying purpose, but derive money from those, either by renting out those places or by selling at more than double price (in order to do the  second you need to buy house in a developing area and not a developed area)
3. Start a self sustaining business - by self sustaining it means where your little or negligible intervention is required
4. Invest in stock or do trading

Let's start with trading. To get the basic idea of trading please read my blog "The Next Best Thing To Earn Money" (http://twisadandapat.blogspot.com/2015/05/while-you-are-running-after-getting.html).

Few of my personal strategies where there is zero risk of losing money in the stock market are:

a.  Do not invest in large amount, invest as much as you can afford to lose. It's ok to invest just Rs 100 as losing this amount won't affect your daily life.
b. Buy the nifty 50 stocks, I am strictly against buying penny stocks as you never know when will that company be delisted.
c. Buy the stocks for long term, as long as minimum 3 to 5 years.
d. While doing so you can invest 10% of your entire stock market investment for shot term and the rule in that is sell as soon as you get at least 8% to 10% profit which is already more than what the bank returns to you.

Next question arises how to select stocks?

For this you have to look for news not for stock suggestion but for understanding the market.
 According to the latest budget housing development will witness a steep growth this time as every rural Indian will get own house to stay. Hence companies who are into construction and real estate have chance for earning more, which means buying their shares are worth a while.
Next industry to target is FMCG because when economy grows consumption increases.
 Another type of investment which you can do is investing in bonds because loan rates have decreased hence more people will opt for home and car loan. Yes you are thinking in the correct line! Banks are another important sector of investment for stock market.

Wait for my next blog for bond investment basics!

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