I was still in grade school when I was confronted with the following question; “would you rather have ten million rupees today or a rupee doubled daily for 1 month? “ little did I know at the time that a penny doubled daily for 1 month to more than 500 million rupees. Sure, age 10, I made the bad choice but it always remembered “the power of compounding,”
This article provides you a basic example of the system that I use to for my investment account. And the idea is not of my thought. I got it from Albert Einstein who referred to a compounding as;” the biggest mathematical discovery of all time.”
Step 1 – if you don’t already have one, open an internet brokerage account with one of the most famous brokerages. You can fund your account with less, I advised Rs 50,000 to begin with. I will provide you one good brokerage firm detail at the bottom of this article.
Step 2 – Join one of the stock market mentoring company or tips provider on the internet. Ensure they have a perfect reputation and at least five-seven years old. Definitely, they will charge a fee but I think this as a business cost and don’t think that you can do this without a mentoring service because you will be negative!
Step 3 – Read the education materials that your mentor provides you as through your victory depended on it. Because it does! It is required to develop strategies on the number of shares / lots you trade.
Step 4- Paper trade until you feel relax risking the finance you have in your account. Paper trading provides you great insight on what the “true globe” of stock market investing will be like. And keep notes that you can favor to later. Read more on paper trading at www.br9.in/4974
Step 5- Strive for 5 percent and no more than 10 percent wins on each paper trade. 5 percent requires twenty wins to double your investment and 10 percent requires ten wins to double your investment. There are approx 250 trading days in the year and you just need ten to twenty winning trades to twin your account. You will find that if you take your time and let the little wins accumulate, you will be ahead of the game at the close of the year. As you get experience, you will do even better.
Note: Most people with little amounts of money to invest think they need to take large risks. This generally causes them to take large losses. Large losses can devastate your available capital investment along with the wanted process of compounding.
Alternatively, when you restrict your success trades to between 5 percent and 10 percent you cut your likely losses significantly as well. The regular alerts provided by your adviser are well explored before they are advised and will more often than not offer wins of at least 5 percent. Most of the time.
Always, bear in mind that the market can be fickle. Take benefit of favorable market trends and stay away from bad trends.
Paying high brokerage ? Why ? Pay Less. Read more at