Stockmarket has become NEW cocaine

Stockmarket has become NEW cocaine💉

A lot of our squad members keep asking for new trade suggestions everyday, many of random telegram group suggest new stock everyday… WHY?!

Do you think quality of your swing trades matter more or the quantity of swing trades? Well diversification is important hence we try to take 12-13 active trades in market but beyond 15-18 we think it can create 2 problems :

1. Less capital in every stock, so even if returns do come in some particular stock due to momentum we earn less in amounts.

2. ⁠If you have infused high capital in every stock, you won’t have enough cash to sit on for taking advantage of next small or big dip. Cash hedge is extremely important in bull markets, that gives us edge to buy quality stocks on discount when broader market comes in downtrend📈📉.

To avoid facing these problems, don’t make stockmarket your cocaine because it doesn’t help your portfolio get high🚬.

What do we do?

WE WAIT, WE KEEP PATIENCE.

Our strategy is simple, when market is at all time high the number of trades are limited but as soon as corrections come in broader market of 3-5% we make a “Shopping List” as many of stocks come at their support level.

So if you’re a GS member, we are unlike other RA firms who give you cocaine and then shout onto the profitable trades like they’re GOD of stockmarket. We think we are humans, we don’t operate market even if some stocks do give above expectations returns we give its credit to BULL MARKET. We believe in sticking to old school plans, they’re much simpler and works efficiently rather than looking at 100s of indicators which have been created by operators to benefit operators🫣

6 months into operations we have had some trades given 40% Returns and combined avg returns of around 20% has been delivered till now (if we exit all trades today), even if we are able to sustain half of these returns *WE WILL GENERATE ABOUT 30% in swing trading. Let alone our SIPs and long term stocks out performing with 30-50% returns.*

The key was to stick onto the stocks that have promising fundamentals and trading at support levels. Yes, we did make some losses as well, no strategy is 100% accurate. Even in long term investing losses may happen, predicting stock prices is not easy and only two type of creatures can have no losses - 1 GOD and 1 LIAR.

We are sitting on unrealised losses in only 2 stocks out of all active trades - Equitas Small Finance Bank (-15%) and MRPL (-20%). However, we think in next few quarters these stocks can gain back their momentum and give us decent returns. Even if they don’t, they’re not going 0 as this is not F&O and these companies have 1000s of crores in sales/profit✔️.

Most importantly we are not chasing to cover these unrealised losses and place new trades everyday only to make portfolio more crowded and cash balance 0.

Hope this article helps you become psychologically less dopamine on everyday gains and losses in market, and focus more on bigger pictures🎯.

Regards,

Team GROWTHSQUAD

Research Analyst Firm

SEBI RA license number : INH000017763