WHERE DO YOU MAKE MAXIMUM PROFITS – SHORT TERM, MID TERM OR LONG TERM?
We at Excel Stock Research have been providing stock market advisory services for nearly half a decade now and we can confidently say that we have catered to almost every type of investor there is in the Indian market for example investors who are happy at least they did not lose any money if not make some or investors who feel even 50% annual returns are not sufficient.
No matter what expectations the investors have, there has been one particular question that we are asked time and again – Where do I make the maximum profits, holding the stocks for Short Term, Mid Term or Long Term?
Hence, in this edition of our Pathshaala article, we thought of breaking the ice and answering the question straight on.
Just a heads up before we dive into the specifics, we do not consider intraday or BTST (Buy Today Sell Tomorrow) as a healthy source of creating wealth, hence, we will not even talk about these two methods under this article.
WHAT IS SHORT TERM INVESTMENT?
According to us, a Short Term investment is where an investor buys and sells within 3-4 months during which he can make anywhere from 10% to 30% and under few cases even more than 30%!
This is the segment where the major action is!
The Short Term investments are mostly based on technical charts and taking advantage of stock specific corrections. Let’s take one of our live examples, Dewan Housing Finance hit 52-week on 20th July 2017 at Rs. 479 and due to profit-booking, it got corrected by 10% in a week itself. Since the stock was expected to deliver great Q2 numbers and the market sentiment was positive, we recommended the stock to our Short-Term subscribers at Rs. 435 on 9th August 2017. Within 1 month, on 7th September the stock touched a high of Rs. 560 and we booked 29% profits – This is a perfect example of a successful Short Term investment.
DEWAN HOUSING FINANCE LTD.
In order to benefit from Short Term investments, one needs to watch the markets very closely on a daily basis and have a precise knowledge of how technical charts work. This is not everybody’s cup of tea since not all investors have that time to dedicate to this.
So, investors who are businessmen with some spare time or those who have made stock market investments their profession can pursue it but on the flip side, professionals with day jobs or with excessive touring engagements should not pursue it.
*We provide a Short Term service, where we do the tracking of news & announcements and give precise exit calls – CLICK HERE to check out our service features*
WHAT IS MIDTERM INVESTMENT?
We believe a Mid Term investment is where the investor holds the stock for approximately 6 to 9 months before exiting the position. During the holding period, one can possibly make anywhere from 40% to 60% and even more than that if he gets lucky!
Mid Term investments are based on positive news & announcements, quarterly results, acquisition & mergers, orders/business received by companies. Such factors give the indicators what the next trend in the stock market can be and one can put his money on the stock which benefits the most from that trend.
For example, we recommended Sundram Fasteners in January 2017 as one of our Mid Term stock pick because we calculated that the stock is going to deliver excellent 4th quarter results which would conclude the FY17 with a jump of approx 10% in Sales and Profitability would grow around 25%. The stock was recommended on 3rd January 2017 at Rs.290 and we booked 64% profits on 15th September 2017 at Rs. 475 – 64% Profits booked in exactly 8 months!
To make successful Mid Term investments, one should understand the basics about our economy and the financial part of a company so as to spot a good opportunity from a bad one. For Mid Term investments you don’t need to be spending hours on a daily basis like you need for Short-Term but you definitely need to educate yourself first and read continuously to keep yourself updated with the current market scenario.
*Or, if you do not wish to invest your time & energy in, first, educating yourself and then keeping yourself updated with the market conditions, you can check out our Mid Term service where we do most of the work for you so all you need to do is book profits – CLICK HERE*
WHAT IS LONG TERM INVESTMENT?
Long Term investment is where the complete game changes!
Think of Short & Mid Term investment as “T-20 Cricket”- the stakes are extremely high and the winner of the game is decided in a matter of few hours. On the other hand, Long Term investment is like “Test Cricket” – this is where the strategy, patience, and experience of the player is rewarded in multi-folds.
According to us, a Long Term investment is where an investor holds the stock for at least 1 year and can either book profits within 2-3 years or can continue holding it for more than 10 and 15 years. The return on investment under the Long Term service is unlimited, one can simply make 100-200% within a year or two but there are so many cases where we have seen 1,000% to 10,000% returns on investment in a matter of 5-7 years or less.
To make multi-bagger returns through Long Term investments, an investor needs to understand not just the basics but has to dive deep into the financial world of stock market – understanding Balance Sheets, Cash Flow statements, and many other complicated financial ratios.
We suggest this strategy to only those who have had prior training in the financial field during their graduating years. Although there have been many successful investors who belong to completely different field but with dedication & investing a lot of time of educating themselves have mastered long-term investment or as we like to call it “Value Investing”
*Everybody wishes to make multi-bagger returns like 100-200% but is it possible for you to invest a lot of time & dedication to do the research? We provide Long Term service where we have a full-proof research process in place which has been tried & tested – CLICK HERE to know more*
Back to our main question – Where do I make the maximum profits, holding the stocks for Short Term, Mid Term or Long Term?
And the answer to this question is – It all boils down to what type of investor you are and what are your financial goals.
But, how it can be so simple – you might ask. Well, it is not about how you can make extraordinary profits in the stock market but simply about meeting your financial goals and suiting your preferences by reducing the risk.
We have been able to help 1,200 investors till now to find the best suitable strategy for them and have generated more than satisfactory returns for them through our services that we offer – Short Term, Mid Term & Long Term.
CLICK HERE to check out what service suits you best or you can contact our representative who can answer all your questions proficiently – 8554833336 / 8554833337.