How I made upto 30 % returns in stocks in 1 month?
How I made upto 30% returns in stocks in 1 month?
While I have been investing in mutual funds for some time, one thing that was running in my mind is how to make quick money in stock market in short term. I used to think why I cannot make decent money in 1 year by investing in stocks. Why not in 1 month? What if I can make good money in 1 week? I have been experimenting on various ways to get superior return in stock market. I have adopted few strategies which worked out well and some turned down. In this article, I would indicate to you some of the good strategies which can be adopted to make high returns in stock market in short term. I would also provide some examples on how I made upto 30% returns in stocks in 1 month.
How I made upto 30% returns in stocks in 1 month?
Here are few strategies I have been adopting in the last couple of months.
1) Make most out of volatile markets
I have filtered several good stocks like Lupin, Marico, Amara Raja Batteries, Yes Bank, Axis Bank etc. and has been looking for some correction in their share prices. While every one has intention of buying good stocks, it is all about timing. I believe that buying stocks at correct time would always give you good returns in short term to medium term. In last 2 months, we have seen markets have been volatile. We are seeing that good stocks are taking correction now and then. I have adopted this strategy and every fall in stock market for 300-400 points, I have captured this as opportunity to buy such good stocks. I have made more than 10% returns by investing in some of these blue chip stocks within 1 month. You can understand beta value of share which would help you to assess how they would perform in volatile markets.
Screenshot of money made on Lupin / Amaraja Batteries (ICICIdirect.com of my account)
2) Stocks that have resistance levels
I have observed that some stocks do not go down below certain share price or would not go up above specific price. Means such stocks are range bound. You can always buy such stock when it reaches to the bottom of the resistence level and sell them when it reaches at top of the resistance levels.
Let me explain with 2 examples.
Ashok Leyland stock, I have been investing in last few months. This stock would reach at bottom of Rs 82. However, it bounce backs to Rs 94 per share. I would have made profits for more than 4 times on this stock in last 4 months and earned more than 10% average returns each time.
Another example is Bank of Baroda. I have been investing in last 4-5 months in this stock for short term. This stock would reach at bottom range of Rs 165-170. However, it bounce backs to Rs Rs 180-185 per share. Though there was negative news about this stock for a while, I could still made a decent return of 5% to 8% each time within a month on this stock.
Screenshot of money made on BoB (ICICIdirect.com of my account)
Identifying such resistenace bound stocks would help you to make money in short term of 1 week to 1 month.
3) Investing in speculative stocks
This is where you make most returns. Stocks where share prices would shoot-up based on speculation about a rumour / news is what I am talking about speculative stock. Identifying stocks in this category is a big challenge. I have invested in 2 stocks where some news was hovering and I made 30% returns in less than 1 month. The news is about US based entity acquiring such company. Due to some reason, I am not indicating these 2 stock names. There are several forums like money control forum, economic times forum where these rumours would be floating and validating such rumour and assessing the impact of such news would help you to ascertain and buy such stocks under speculation.
Screenshot of money made on one of the speculative stock (ICICIdirect.com of my account)
Conclusion: This article is not about recommending to buy some stocks indicated above. Making most out of volatile market, investing in speculative stocks and range bound stocks are some of the strategies I have been following in last few months to make high returns in stock market in short term. You can follow these strategies by identifying some stocks and by investing in small amounts. If you think, these strategies are working out well, you can increase your investment and get decent returns.
Readers, what do you think about these strategies to make quick money in stock market in short term?
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How I made upto 30% returns in stocks in 1 month
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