In this article we will see the ratio of initial investment in stock market for all types of investors, except An investor from rich family doesn’t need to really spent time on reading this article.
An average earning investor (employee) should aim for 500-5000 unit profit. For example 1000 shares of 20 rupees can be sold at 22 rupees to make profit of 2000 rupees as in mentioned ratio. Anything above and below at risk for initial investors. What I mean to say, an investor is looking at the profit of easy 100-200 unit, then it is waste of time. Because the time you spent on earning this tiny profit is too much and worth. And if an initial investor is looking for profit above 5000 unit, then he/she will need to invest mammoth amount, which would be too risky for initial investors.
Regular investor(businessman) can target for 50,000 to 5,00,000 unit profit. This is because, he/she is so already dwell in share market world, he/she can easily point of stop loss margin instantly. As compared to initial investor he would just wait for stock price to go up.
Heavy investor (managing directors) can target profit from 500,000 to 500,000 unit. Anything above that is too much risk and anything below such profit margin is not worth for the time for that particular investor.
hope this was helpful.
You will be thinking that whether stock market is predictable or not. Because Everyone want to earn money from it. So let me unveil secret, Yes stock market is 100% predictable if you are in real time.
Stock market is based on two things, one is fundamental things and another is technical trends. Fundamentals things like financial news, profit-loss to company or bankruptcy of company etc.
Technical trend means, you can identify some trends based on pricing ratio of a share in last week or last month.
All what I said doesn’t required rocket science. As I said in my previous blog post, you have to be good in numbers and good with people.
hope this helps,