How To Invest In Stocks For Different Time Periods
Stock Market Investments has been made for earning good returns in future and for this you should allow some time for your investment and for that you as a investor have some patience. Patience is important for doing anything and in stock market investment its most important because if you don't have enough patience then you keep yourself away from very good returns and can make your own loss without any reason.
At your starting all things will not come in mind so don't think about that, gradually you can understand everything.
Keep your hopes, think positive and keep patience and think for long term otherwise you have to satisfied in less/limited profit.
you will learn here information about stock investment
for different time periods with some examples so you can actually get an idea for doing
investment in stock market for your right time.
Actually, There is no any fixed period for investment but as per company results, four qurdrants of year, business time, Trading point of view.
Divided it into three parts:
Short Term Investment.
Medium Term Investment.
Long Term Investment
• Short Term Stock Investing
(3 to 6 month)
The short term stock market investment is for 1 to 3 months. Why one to three months, because after every three months company results will display. How was company performance, company is in profit or loss and how much company did the business during these three months.if you are doing your small study and analysis regularly, you can actually Take decision about your investment and you can continue your holding or exit from that company and can invest in stocks .
If you are not doing your technical analysis regularly then it's more riskier for you because you don't know that what's company position and what is company performance in their market.
For Short period its very important otherwise you will yourself in that company stock and can't exit quickly.
If you already bought a stock and holding it and still company is performing good,then you can hold it for more than three months because investment is that in which you earn more returns by investing in stock once.
In short term, time period is small nobody cant say how and when price will increase,so if you are going to buy shares for short term investment then buy a good volume company shares which gives you good profit in less time.
Here you can see company graph on site or on your app for short term :
Radico khaitan company.
For e.g companies like infosys, reliance industries, HDFC bank and more... Why like that because they having good volume and movementum and price changes every week. so if you want to exit you can take exit in profit. This is the benefit of buying more volume company.
Short term is more riskier than medium and long term because of less time and also some companies has very good but they improving slowly so you have to wait for some more time than normal.
Some times you bought a stock and sell it early because you got good profit and think you are doing good but this is not entirly right actually.
Indirectly you are making a big mistake here because stock which you have sold with some good profit will outperform in future and you are unknown for this and keeping yourself away from very good returns.
if a stock is good then hold it for more time you will get more returns in one stock. I also made a mistake in a company share which I bought at 165rs and sold it at 180rs because I got profit in less time but after one year share price went at 400rs. I didn't think the price could rise that much. you can't believe on me I will give you some company examples which perform good in short term as well as in long term.
Here is a company performance which I bought in 2017-18 year.
Sterlite technology Ltd.
I earned just 15rs per share instead I could be earn 200rs per share for same stock.
Medium Short Term Investment
( 6 month to 1 year)
Medium short term stock market investment is for 6 months to 1year period. This is a sufficient time period for less time investment because you can actually judge the company performance as near as possible. Also company annual results will display after a year. so, you can
study Company past and current year performance and can compare it with short and medium time results.
This time period is suitable because as company
launching new Product and service or working on previous product improvements will take some time and one year is right period for this, so you don't have to worry about that because you earn good profit in one year and even if you don't earn then also don't worry because if company products are good then definitely you will earn after some time just keep some patience at that time.
Here is a example for one year. open your trading app or site see this company graph.
Reliance industries Ltd.
Holding a company more than 12 month is also profitable because the holding charges are zero means you don't need to pay holding charges after a year. In this time period some of risk will reduce.
Long Term Investment
(10-15yr or more)
This is the best time period for the stock market investment because in long term risk is less and returns are very high. So if you want high returns then make investment for long term without worrying.
The long term investment may be of 1yr-5yr or 5-10yr or more also.
For long term always buy good company stock by doing research, study and analysis because you are holding it for long period and company should give you very good returns in future otherwise your time and money will stuck in less return equity investment.
For selecting a Company always see first company business, product, service and then price, if price is less then buy it and hold.
Long term stock market investment means you have bought a company at low price(e.g 10 or 20 rs or 100 0r 200 rs) and you will sell it at high price (1000 or 1500rs or 2000 rs).For this you have to wait till the highest share price will reach. investing in a stock at low price will increase your share quantity as well profit and reduces your risk ratio.
Here is best example of long term investment you can't believe on,
MRF COMPANY:
This is all time multibaggar company till now, see what is the return rate in long term.
In 2001, MRF price was between 500-1000rs and now it is 60000rs. In 2019 year.
You can buy companies from sectors like food, clothing,Oil, daily essentials products, engineering and technology, liquid foods..... Because they having growth in the future and they are needs of human life, so always buy growing company stock for long term.
Another outperformer multibaggar is,
Titan company.
In 2001 titan company price was just 1-2rs and after 15 years it is 1200-1300rs.
Just think, If you would owns 5000 shares of 5000 or 10000 rs of titan then, now it has became 60,00, 000rs.
Sometimes you don't need research and study in long term, you can directly buy a company shares because in long term any company from any field can perform good at least once in their time because this time period is too large and any company can improve their performance than past. so don't worry if you already bought a company without study.
another one is ,
Sterlite technology.
If you already bought a stock and want to hold it for long time then study some things about company and then hold or if you found stock is not good for long term and there is no growth in future then quickly exit in profit, if possible and buy another stock. So, now decision is your for making your stock market investment for Short or medium or long term period. As per my view long term investment is the best because you can earn high returns with less risk. Always remember this.
!Happy Investing!
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