Achieving Your First $100K in Stock Trading: A Guide
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Chapter 1: My Journey to Financial Success
Embarking on a journey in the stock market has been a lucrative endeavor for me, aiming to secure a stable income through trading. The question arises, how did I achieve my first $100K solely through stock trading? The answer lies in consistency and strategy.
In my college years, I initiated my investment journey by dedicating substantial time to market research. My daily ritual involved poring over 'The Economics Times' for several hours, which greatly enhanced my understanding of the stock market dynamics. This foundational knowledge propelled me towards earning a significant profit from my investments.
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Section 1.1: Unique Strategies for Stock Selection
I employ distinct strategies compared to many investors, diversifying my portfolio across various asset classes, including Gold, Equities, Mutual Funds, and Commodities. These investments collectively contributed to reaching my financial milestone. A crucial aspect of my strategy is identifying undervalued stocks that have experienced profit-taking.
Choosing the right stocks is essential. I utilize various tools to identify stocks trading below their 200-day moving average. I thoroughly analyze the fundamentals of potential investments, ensuring they are robust. Following this, I conduct technical analyses to set target prices, which informs my decision on when to sell.
Subsection 1.1.1: The Art of Swing Trading
By applying this seemingly straightforward method, yet often challenging to execute, I take positions in fundamentally strong stocks. My strategy involves swing trading these stocks over a three to six-month period, aiming for profit targets of 15% to 20%.
I also strategically invested in index funds during market downturns. Index funds are categorized as lower-risk investments. Unlike direct stock investments, they are generally less volatile because they comprise a collection of stocks. This diversification mitigates risks, as a decline in one stock can be offset by gains in others. The long-term returns from these funds have significantly boosted my portfolio.
Chapter 2: Learning from Losses
In the video "How I made my first $100K," I share insights on my investment journey and the tactics that led to my success.
I have also come to terms with the reality that not every investment will yield positive results. Approximately 20% of my stocks are currently underperforming. However, if I have faith in a particular stock, I am willing to hold onto it longer. When presented with better opportunities, I strategically take profits from underperforming stocks and reinvest in more promising options.
In the second video, "How I saved my first $100,000 (my formula)," I outline the formula that helped me save and invest wisely.
Conclusion: The Simplicity of Investing
Investing doesn’t have to be complicated. Whether through newspapers or insightful YouTube videos, anyone can learn the ropes. My portfolio thrives because of my strategic investments in high-quality stocks. Remaining engaged in the market over time is crucial for financial growth. With discipline and sound judgment, I believe anyone can achieve financial success in the stock market.
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