Your logic and examples hold true only if you use this technique in fundamentally weak stocks.. Using the averaging technique in fundamentally strong stocks helps in getting better ROI..
Averaging is not bad in good fundamental stocks but keeping stops loss is bad. His explanation of averaging is from a trader point of view and not for not for investors
Bang on, was about to comment and see you have already. Value investing is finding cos trading lower than their fair worth and in this process the price may be trending down before the upturn
The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes.Thanks
Thank u for saving my time. These tubers make me lose my time by making a complex 30 min video to express a simple idea 💡 which u expressed in a simple sentence above. Thank u.
After listening to this guy i bought a stock and it went 30% up i used pyramid then it went 60% down which lead me to have more loss 😢 than previous investment. And a stock which i have not used pyramid and avg it at low prices it gave super returns. Though it made me feel cry for some months😅.
things are just opposite for me..the moment i stopped averaging stocks and instead add to winning stocks i started earning money from my investments much faster..simple reason is how big the company is ...a falling stock recovers much late than a winning stock moving upwards..
I am at the beginning of my "investment journey", planning to put 185K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Adding JEPI and JEPQ are smart additions in my opinion. As for staying committed to long-term investments, it's all about balancing your risk tolerance with your long-term goals.
The market's instability makes DIY risky. You don't need to find the next NVDA to succeed in investing. Opt for top-notch ETFs, dividend aristocrats, and a trusted advisor. I've turned $100k into $20k in annual dividends, a major milestone.
*Jennifer Leigh Hickman* has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend her if you want excellent collaboration.
Bhaiii...itna hi dar lagta he to share market me aana hi nahi chahiye...if you dont averages out in fundamentally good company then you will not be able to make money...if you add money at higher and higher level you end up loosing money😂😂😂 kese kese log aa jaate he youtube pe
Bhai tu bahut emotional hai... he is saying correct only... if you buy at the right price you should only average up even if it is good fundamental company
Always average up. Only follow price. That's what the world's best traders do. You have no clue about trading.... quick to identify a noob.... kaise kaise log comment karte hai you tube par
Quite logical and sensible. Some say in the markets, Trends ko Friend banaao, meaning buy quality stocks which are rising, rather than averaging on falling stocks👏👏👍
Did math on ‘buy the dip’ oppose to buy the stock at increased price @8:19 5*90 = 450 15*80 = 1200 30*70 =2100 Total shares I own = 100+5+15+30=150 Total investment 3750 +10000 =13,750 My average is 91.6!!😃 If stock increases to 250 per share today then 150*250=37,500 Your average per share is 125😌 in future if stock reaches down to 125 you are under loss but I’m in gains
"Pyramiding" can also be done when the particular stock and market in general is going down. You can allocate smaller and smaller amounts and keep adding on the way up as well. JIO FIN was a perfect example of this. Trying to build a long term position, I started to buy at an all time high and then averaged both going down and on the way up. Worked well for this particular stock and point in time
You were saying market doesn't work on expectation for averaging. But, when you are talking about pyramiding, you are talking as if your investments would go up as you are EXPECTING. Wow
In my experience averaging over 6 to 1 year period on fundamentally strong stocks worked out beautifully and got me around 20 to 25% returns in 6 to 8 months period.
My experience was we can average the stocks one which was strong, undervalued & debt free companies...like this of stocks if it is fall defenetly within no time it will reverse.
Thanks dear for such a valuable information. Because of averaging I was loosing a lot , now I know how to recover the loss. ईश्वर आपको ऐसे ही स्वास्थ्य और दीर्घायु बनाए रखे
Averaging in NBCC fetched me good profit. During last budget NBCC shot up one day and I bought 100 shares of NBCC at 169 it went up to 172 but then started falling almost every day. Lastly I had 400 shares at an average of 142 ! It was then traded at around 121. Then one day as soon as it came down to 112 I bought 600 shares and decided not to average any more. But from then it started rising. Lastly I made exit from it at an average of 133 gaining Rs.3500. This is a story of a very small investor like me! I used to average in almost all cases. But tried to purchase prospective shares. And in this upward market I am sure to get profit in all cases. I respect your idea too.
In a volatile market you will hit stop loss again and again and after falling stock will again rise and again fall, pyramid strategy will be a disaster in volatile market. However not falling in love with stock is a great advice!
So what will you do if stock starts correcting after you bought for 100 and then 150? You would book huge loss or wait indefinitely till stock climbs back to 175 so that you can buy again....please explain
Just to prove his point he shows that that the stock is falling continuously. A stock cannot continue to fall only , there will be a time when it will have uptrend. So if you have spare money to invest and you are invested in a fundamentally good stock then average at every 10% fall. He is saying that market does work on hope and expectations but market does not goes down only and vice versa.
Averaging (with no stoploss) & pyramiding (with stoploss) are done in stocks/indices which are going down or up respectively. In averaging you buy increasing number of stocks in order to average down your buying price, WITHOUT a stoploss.This might work well in fundamentally strong stocks going down due to a weak external environment or due to a temporary problem in the company. This might also work if you select a sectoral index/ETF which is going down due to factors mentioned above. Pyramiding might work well in stocks/indices which are in an upward momentum. Here you buy decreasing number of stocks on the way up, in order to take full advantage of the momentum in the stock WITH a stoploss to protect your capital.This should work well both for fundamentally weak and strong stocks which are in an upward momentum. So choose an appropriate stock in a suitable market trend to gain more profits.
I agree with your statement because I lost lakhs together in one lot by averaging by listening to others. I would not have made this mistake if I were your subscriber.
Key words used by Mr Ajay are "Dont fall in love with any stock". Yes we make such mistakes, sometimes good profits are already made & our gut feeling knows that stock price will now fall due to profit booking, we keep tightly holding the stock and this is from where our losses accrues. So most imp. is time to time we must book profits & when price fall and if stock is good buy more on dip.
He is telling truth.I am the example all my money stuck in the averaging the infosis but it is keep on going down but now I don't have the much money to invest in other stocks I already sold 50% of stocks with huge loss
You will regret your decision in 2-3 years and it was your mistake to buy it when it was overvalued.... ironically what this guy is telling to do buy overvalued stocks
Hi, I have an important question. Regarding Pyramiding the position on highs and adding new more stocks to already profitable one, I noticed the average buying price worry me lot. I noticed, the buying price of those stocks taken before pyramiding are now changing automatically to new higher average price after the adding. For example, I was sitting on 10 % profit and after pyramiding, my profits have suddenly gone down to just 5% and when the stock goes down, I lose all the profits I have made earlier because earlier I had 10 % buffer which now gone down to only 5 % . This is very difficult for somebody who was already in profit to see your position is already getting into loss. So what most traders do in such cases? Thanks
Buy when the price has fallen below 25--35% from your earlier purchase price, you can do averaging. When you do averaging, see your average cost is below the current market price Buy when the price is below 200, days moving average.
Puzzled by your theory, which may be applicable for intraday not for long term investment Construction of pyramid also starts of earth work from bottom and not on atop , my reference to solid companies, no one can catch the exact top or bottom price of a share in the market...
People just do not average out for only 10 points low . They average out when minimum 10 to 20 % down . Averaging down & averaging up both are necessary but in the most convincing stocks !
Building wealth from nothing involves consistent saving, disciplined spending, and strategic investments. Begin by creating a budget to track expenses and identify areas for savings. Prioritize paying off high-interest debt and establishing an emergency fund. As you build a foundation, start investing in low-cost options like index funds, and focus on continuous learning and improving your skills for better income opportunities
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
The best strategy is the close to the bottom of the drop, the bottom of the drop - middle of steadiness, and the bottom of the rise. This has helped me gain great amounts of profits throughout a cycle.
@Ajay Ajith: For swing traders, Is there any better way of handling crash like corona crash? If stocks open gap down much below our stop loss what should we ideally do? Can you make a video on this?
I just hit $100,000 net worth this last quarter from saving and i plan to invest in the stock market to see it grow in the next 3 years. What is the best way to navigate the stock market as a newbie?
I believe a healthy portfolio has 3 things, at the bare minimum: Exposure to ETFs for increased diversification, Exposure to assets that generate cash flow like dividend stocks, Exposure to market-leading tech.
Consider allocating 30-40% to a High-Yield Savings Account (HYSA) and enlisting the help of an advisor to diversify into positions with the rest of your capital. My advisor has significantly impacted my financial journey, fostering clarity and confidence in the stock market. Thanks to her guidance, I've grown my portfolio from $100k to $1.4m in just 5 years.
She goes by ‘AMBER KAY WRIGHT’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
I'm impressed with your advisor's prompt response and expertise. Her clarity and professionalism instilled confidence from the start. Excited to explore opportunities together! Thank you.
At 8:28, without 'pyramiding' and buying all 150 in the first go itself would give you a profit of 22500 - NOT 15k ! At 8:54, without 'pyramiding' and buying all 150 in the first go itself and exiting at 200 would give you a profit of 15000, greater than the 'pyramiding' profit of 11250 Also, if it is a fundamentally good stock, I don't like the idea of 'pyramiding'. If you have done your due diligence and find the stock good, you should buy the stock in every dip. Not sure why need to stagger the purchase
Very valuable advice. Average only in top 200 companies . But stoploss 3-5% depending on price of stock is good . In a volatile market 2% change is common . A bad news on sector brings 2% fall .
Why would one average out for a company or firm that is not doing good or making losses ??? Average out is a good idea but it has asterisk attached to it
I have been in Markets from 8 years and i have got the transition from 2 generations of Market - they never told avoid averaging - They always told me one thing - Enter with only 25% in non f&o stock if f&o 50% of whatever i want invest. Then at every 1% down I'll add 10% of remaining 50% so from the top i have added 50% at 10% lower the entry..
A good video i must say but i will always prefer stocks. AI stocks will dominate 2024. Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.
I agree, just because the market presents opportunities doesn't mean we should rush in headfirst. For this reason, we should look for appropriate market analysis or guidance or, alternatively, seek advice from certified market strategists.
Having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
One of my goals is to employ the service of one this year. I've seen some off Facebook but wasn't able to get a response. Could you recommend who it is you work with?
@@HilaryPhan I find this informative, curiously explored Vivian on the web, spotted her consulting page, and was able to schedule a call session with her, she shows quite a great deal of expertise from her resume.. very much appreciated
In pyramiding you grew the stock by 50% and by 100%. And as mentioned by you, you only do it for nifty 200. The companies in Nifty 200 generally take more than 3 years to grow by 100%.
SIP also one of the averaging concept, just we need to pick good fundamental stock and good segment and SIP for 10 years to grow your money along with their business.
Hi friend, while pyramiding , what if the price of a stock falls below the first bought price ?. So, after studying the history of the stock movement, it's better to average the stock price as it falls & someday it starts recovering & can make profits.
Bro you shouldn't average at 90 or 80. You should only average at the next support point. Buying stock at every 10% dip is not averaging bro, no one would do that.
I did this pyramid investing in downtrend to reduce the avge. I tried ,out of total shares ,freshly added 5 to7 %. More than this percentage results not worthy. Once prices breakthrough your in next uptrend,u have to exit fully. Not part by part. Coz,FIFO (First in First out ) shares will reduce in this formula.
I agree and i dont agree as well.... averaging is needed when you have a fundamentally strong share in your portfolio which is falling ... it will give high returns when stock gains speed again... so averaging is not bad... only bad when fundamental of that sto k is poor... Other side, pyramiding always needed when the same stock starts growing up... that way i get benefit of both sides.. So all in all, what is most important is that i should have enough money to invest in any situation
Upward averaging can wreck holdings if a bearish move occurs... Same for downward averaging. The only thing to consider for averaging is to do it only when you do not see any other better stocks in the market.
Convincing arguments against averaging and in favour of pyramiding. But, wait for a second, stop loss is a bad idea for a long-term position holder one would lose more often(small loss limit) or a one-time loss (big loss limit). I have learned that if a company is a reputable and established entity, only then averaging is not a bad idea but if it drops by 25% or more. If it is not take the loss max. at 25% and run with your money. One scenario you can not avoid is if the stock suddenly falls 40-50% in a single day or abruptly. The bottom line is to never use averaging on a sick horse; which likely end up in bankruptcy or accrue further losses. Pyramiding is also not very safe, stock in an uptrend is more likely to reverse its trend. Recently, markets in general become less predictable and more ruthless.
The only time averaging will fail is if the company is going to be closed, other wise it is the best strategy. Stop loss is the strategy you only make loss
Hey Ajay Good stagey I am hearing this is the first . If I already heard about it I won't invest huge money in falling share Like delta corp and bcg. If you don't mind can you give me a suggestion
Stage the stock... Upward trend, down ward or consolidation.. Correlate technical with fundamentals.. Average only it is in consolidation for good companies or start moving up from consolidation... Now look at polyplex stock.. Fall completed, from consolidation it is going up... U can upward average
Also, if it is a fundamentally good stock, I don't like the idea of 'pyramiding'. If you have done your due diligence and find the stock good, you should buy the stock in every dip. Not sure why need to stagger the purchase
Not clear,,what to do in case of falling stock values? What he said is buying smaller quantity in case of rising stocks,,, that's good, I used to do it,,but in case of fundamentally strong stocks, loss averaging is a good technique for the long run. In case of losing stocks, I try to get it out or hold it for the next happenings,,,of course for good stocks.
One thing i learnt in my 10 years of experience in share market.
Watch, hear & read all advices. Follow your own gut feeling. You will never lose.
Agree
Very well said
Thik
You are right sir
Well said
Your logic and examples hold true only if you use this technique in fundamentally weak stocks.. Using the averaging technique in fundamentally strong stocks helps in getting better ROI..
Right, ye log confuse ho ke gyan batne aa jate hain.. 😀
He is talking about penny stocks
He just proves what a. Nonsense discussion the South Indians do in the IT companies No work Just Bakwas! 😂❤
Ab tumko yaha South/North dikh gaya. Kattue ho kya 😀
Well said👏
Averaging is not bad in good fundamental stocks but keeping stops loss is bad. His explanation of averaging is from a trader point of view and not for not for investors
Bang on, was about to comment and see you have already. Value investing is finding cos trading lower than their fair worth and in this process the price may be trending down before the upturn
Hmm thought so too
I did averaging in hdfc today will come back later to this comment and say if it went well
@@VasanthExploresI did averaging in next50 and sensex investment. I hope BJP will wins and stock price will bounce back. Let see what happens
Boss super reply and your are right. He is not setting any context before explaining any concept
Averaging is not a mistake
Great Mistake
Not at all
The idea of investing a significant sum of money may be both thrilling and intimidating. There is potential for considerable wealth increase with the correct strategy. How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?
the strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
Tenley Megan Amerson . She is well known; you ought to look at her work.
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes.Thanks
I think the Pyramid strategy is also averaging. Some people will call it as upward averaging
Thank u for saving my time. These tubers make me lose my time by making a complex 30 min video to express a simple idea 💡 which u expressed in a simple sentence above. Thank u.
Yeah. What he said as averaging is downward averaging. What he said as pyramiding is upward averaging.. Both are averaging 😂
Also, I noticed, for downward averaging price is down by 10% but for upward price is up by 50%. Does is make sense?
I am continuously averaging when market falling and I am 26% profit.
When profit then average its more profitable
But only in quality stocks in market corrections
After listening to this guy i bought a stock and it went 30% up i used pyramid then it went 60% down which lead me to have more loss 😢 than previous investment.
And a stock which i have not used pyramid and avg it at low prices it gave super returns. Though it made me feel cry for some months😅.
things are just opposite for me..the moment i stopped averaging stocks and instead add to winning stocks i started earning money from my investments much faster..simple reason is how big the company is ...a falling stock recovers much late than a winning stock moving upwards..
you need to keep a watch
Wait till you reach bear market you'll get to know what this all means@@asifali007
You should trail SL
Instead you book profit and re invest at best price..no Stock goes upwards continuously..
21 years old lecturing about markets 👏🏽
He is 21 😮
i am also 21 years old and he doesn't look like 21
I am at the beginning of my "investment journey", planning to put 185K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?
Adding JEPI and JEPQ are smart additions in my opinion. As for staying committed to long-term investments, it's all about balancing your risk tolerance with your long-term goals.
The market's instability makes DIY risky. You don't need to find the next NVDA to succeed in investing. Opt for top-notch ETFs, dividend aristocrats, and a trusted advisor. I've turned $100k into $20k in annual dividends, a major milestone.
I've been considering getting one, but haven't been proactive about it. Can you recommend your advisor? I could really use some assistance.
*Jennifer Leigh Hickman* has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend her if you want excellent collaboration.
Wow, her track record looks really good from what I found online. I'll take a chance and see how it goes. Thanks for the info
Bhaiii...itna hi dar lagta he to share market me aana hi nahi chahiye...if you dont averages out in fundamentally good company then you will not be able to make money...if you add money at higher and higher level you end up loosing money😂😂😂 kese kese log aa jaate he youtube pe
Bhai tu bahut emotional hai... he is saying correct only... if you buy at the right price you should only average up even if it is good fundamental company
Always average up. Only follow price. That's what the world's best traders do. You have no clue about trading.... quick to identify a noob.... kaise kaise log comment karte hai you tube par
Sahi kahaa..ye sab logon ka gumraah kar rahe hai
@@RollsRoyce2035 bhaiii...with my experience i can say that share market is game of patience and luck in good stock..
Bhai yeh madrasi managers aisehi dimag khate hai IT comoany mein! 😂❤
Quite logical and sensible. Some say in the markets, Trends ko Friend banaao, meaning buy quality stocks which are rising, rather than averaging on falling stocks👏👏👍
ETF investments are best.... for average, compared to stocks.
Completely agree as ETF should go up over time.
ETF is good investment than mutual funds..you will know exact selling price and good liquidity
@@satyanarayana007 you will know much better when you will go to sell, but no buyer will be present. there is no volume in etfs
Yes
Did math on ‘buy the dip’ oppose to buy the stock at increased price @8:19
5*90 = 450
15*80 = 1200
30*70 =2100
Total shares I own = 100+5+15+30=150
Total investment 3750 +10000 =13,750
My average is 91.6!!😃
If stock increases to 250 per share today then 150*250=37,500
Your average per share is 125😌 in future if stock reaches down to 125 you are under loss but I’m in gains
Glad that someone told the facts
❤
Not understand gi
Whatever you r saying that may be good but it doesn't mean that averaging is bad. Averaging is more important than whatever you r saying..
Sir is pyramiding is also applicable in etfs
Do SIP in ETFs. It's better.
Pyramiding is a good concept, but averaging fundamentally strong stocks going low is not a mistake.
Overall nice video. Keep it up .
Come to topic as early, don't do blablabla.....
In mutual funds, we can do avg right?it's safe there
Yes you can do it mutual funds
6:18 Pyramiding starts
"Pyramiding" can also be done when the particular stock and market in general is going down. You can allocate smaller and smaller amounts and keep adding on the way up as well. JIO FIN was a perfect example of this. Trying to build a long term position, I started to buy at an all time high and then averaged both going down and on the way up. Worked well for this particular stock and point in time
Evn i plnd pyramiding 4 jio and avg for tata motars and itc.
You were saying market doesn't work on expectation for averaging. But, when you are talking about pyramiding, you are talking as if your investments would go up as you are EXPECTING. Wow
In my experience averaging over 6 to 1 year period on fundamentally strong stocks worked out beautifully and got me around 20 to 25% returns in 6 to 8 months period.
Just try holding for 5 years you will be mesmerized with the results
My experience was we can average the stocks one which was strong, undervalued & debt free companies...like this of stocks if it is fall defenetly within no time it will reverse.
Thank you for sharing. Please take a real world example like Nestle stock and show how it works. Otherwise it is just theory, which has no use case.
Thanks dear for such a valuable information. Because of averaging I was loosing a lot , now I know how to recover the loss.
ईश्वर आपको ऐसे ही स्वास्थ्य और दीर्घायु बनाए रखे
Averaging in NBCC fetched me good profit. During last budget NBCC shot up one day and I bought 100 shares of NBCC at 169 it went up to 172 but then started falling almost every day. Lastly I had 400 shares at an average of 142 ! It was then traded at around 121. Then one day as soon as it came down to 112 I bought 600 shares and decided not to average any more. But from then it started rising. Lastly I made exit from it at an average of 133 gaining Rs.3500.
This is a story of a very small investor like me! I used to average in almost all cases. But tried to purchase prospective shares. And in this upward market I am sure to get profit in all cases.
I respect your idea too.
Bro, very small returns on such a big investment. I had bought NBCC at 30 a few years ago, forgot it ..and then sold at 180😂
Is good for buy Coffeeday,now?
In a volatile market you will hit stop loss again and again and after falling stock will again rise and again fall, pyramid strategy will be a disaster in volatile market. However not falling in love with stock is a great advice!
So what will you do if stock starts correcting after you bought for 100 and then 150? You would book huge loss or wait indefinitely till stock climbs back to 175 so that you can buy again....please explain
The main key is selecting fundamentally strong stock after that whether you invest with average method or pyramid method it hardly matters
@@Hello-pb12 yes thats the point
Just to prove his point he shows that that the stock is falling continuously. A stock cannot continue to fall only , there will be a time when it will have uptrend. So if you have spare money to invest and you are invested in a fundamentally good stock then average at every 10% fall.
He is saying that market does work on hope and expectations but market does not goes down only and vice versa.
Past 1 year, i am using pramid strategy.. for me its working perfectly...
Averaging (with no stoploss) & pyramiding (with stoploss) are done in stocks/indices which are going down or up respectively. In averaging you buy increasing number of stocks in order to average down your buying price, WITHOUT a stoploss.This might work well in fundamentally strong stocks going down due to a weak external environment or due to a temporary problem in the company. This might also work if you select a sectoral index/ETF which is going down due to factors mentioned above.
Pyramiding might work well in stocks/indices which are in an upward momentum. Here you buy decreasing number of stocks on the way up, in order to take full advantage of the momentum in the stock WITH a stoploss to protect your capital.This should work well both for fundamentally weak and strong stocks which are in an upward momentum.
So choose an appropriate stock in a suitable market trend to gain more profits.
Exactly fundamentally strong stocks me buy on dip karna chahiye .
I agree with your statement because I lost lakhs together in one lot by averaging by listening to others. I would not have made this mistake if I were your subscriber.
Key words used by Mr Ajay are "Dont fall in love with any stock". Yes we make such mistakes, sometimes good profits are already made & our gut feeling knows that stock price will now fall due to profit booking, we keep tightly holding the stock and this is from where our losses accrues. So most imp. is time to time we must book profits & when price fall and if stock is good buy more on dip.
I usually recommend people to give an entry to stock with 20 percent of money and not entire money. This will help to make profit on an average
What if the stock you did upward averaging fall near to your first stock purchase price?????
He is telling truth.I am the example all my money stuck in the averaging the infosis but it is keep on going down but now I don't have the much money to invest in other stocks I already sold 50% of stocks with huge loss
You gotta hold that goddamn share brother
It is a fundamental strong stock.. you will not loose if you are averaging and waiting it..
You will regret your decision in 2-3 years and it was your mistake to buy it when it was overvalued.... ironically what this guy is telling to do buy overvalued stocks
Hi, I have an important question. Regarding Pyramiding the position on highs and adding new more stocks to already profitable one, I noticed the average buying price worry me lot. I noticed, the buying price of those stocks taken before pyramiding are now changing automatically to new higher average price after the adding. For example, I was sitting on 10 % profit and after pyramiding, my profits have suddenly gone down to just 5% and when the stock goes down, I lose all the profits I have made earlier because earlier I had 10 % buffer which now gone down to only 5 % . This is very difficult for somebody who was already in profit to see your position is already getting into loss. So what most traders do in such cases? Thanks
I am not a financial expert, but from my experience, averaging always works best for me.
Buy when the price has fallen below 25--35% from your earlier purchase price, you can do averaging.
When you do averaging, see your average cost is below the current market price
Buy when the price is below 200, days moving average.
Hi
Which camera you are using for shoot?
i trades only nifty 50 company so can i do averaging
Averaging is good in falling market in fundamentally good stocks, your point is applicable only in case of growing market
Puzzled by your theory, which may be applicable for intraday not for long term investment
Construction of pyramid also starts of earth work from bottom and not on atop , my reference to solid companies, no one can catch the exact top or bottom price of a share in the market...
How does this play out in a scalping scenario?
People just do not average out for only 10 points low . They average out when minimum 10 to 20 % down .
Averaging down & averaging up both are necessary but in the most convincing stocks !
Completely agree with you bro, I'm not sure why he tells about 10 points
Nice video. Don't love stock but love your capital ❤
Explained very nicely even a layman like me could understand.
Keep educating!!!! 😊.
What he said is true,also common sense .good luck.
Ajit but if 1 stock should be only 2 percent of portfolio, then I have to track 50 stocks, who has time to do thi?
Wt you do the if the stock comes to 100
I learnt when to do investments I liked dis vdo best analysis
Building wealth from nothing involves consistent saving, disciplined spending, and strategic investments. Begin by creating a budget to track expenses and identify areas for savings. Prioritize paying off high-interest debt and establishing an emergency fund. As you build a foundation, start investing in low-cost options like index funds, and focus on continuous learning and improving your skills for better income opportunities
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $275k to around $750k.
The best strategy is the close to the bottom of the drop, the bottom of the drop - middle of steadiness, and the bottom of the rise. This has helped me gain great amounts of profits throughout a cycle.
Thanx for making this video..All of your points were so relevant and close to my way of investment..
❤❤
Bro I am really impressed by our content quality... keep it up 🙏👍
You are partially correct. You should put stop loss for the profit you have gained.. exiting is not a good choice if the stock is really good
Credit access grameen main kya karun??
Pyramiding Strategy is good in Bull markets, while in Bear markets Averaging is best!
When it's turn to bullishn, u can do avg
@Ajay Ajith: For swing traders, Is there any better way of handling crash like corona crash? If stocks open gap down much below our stop loss what should we ideally do? Can you make a video on this?
I just hit $100,000 net worth this last quarter from saving and i plan to invest in the stock market to see it grow in the next 3 years. What is the best way to navigate the stock market as a newbie?
I believe a healthy portfolio has 3 things, at the bare minimum: Exposure to ETFs for increased diversification, Exposure to assets that generate cash flow like dividend stocks, Exposure to market-leading tech.
Consider allocating 30-40% to a High-Yield Savings Account (HYSA) and enlisting the help of an advisor to diversify into positions with the rest of your capital. My advisor has significantly impacted my financial journey, fostering clarity and confidence in the stock market. Thanks to her guidance, I've grown my portfolio from $100k to $1.4m in just 5 years.
Wonderful!!! I've recently sold property and aim to invest in stocks, seeking guidance. How can I reach out to her?
She goes by ‘AMBER KAY WRIGHT’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
I'm impressed with your advisor's prompt response and expertise. Her clarity and professionalism instilled confidence from the start. Excited to explore opportunities together! Thank you.
It's very good strategy which I am thinking after 8 years of experience in the market.
At 8:28, without 'pyramiding' and buying all 150 in the first go itself would give you a profit of 22500 - NOT 15k !
At 8:54, without 'pyramiding' and buying all 150 in the first go itself and exiting at 200 would give you a profit of 15000, greater than the 'pyramiding' profit of 11250
Also, if it is a fundamentally good stock, I don't like the idea of 'pyramiding'. If you have done your due diligence and find the stock good, you should buy the stock in every dip. Not sure why need to stagger the purchase
What if the stock you bought starts falling, you just get out of it at your predefined stop loss and book loss!!
Very valuable advice. Average only in top 200 companies . But stoploss 3-5% depending on price of stock is good . In a volatile market 2% change is common . A bad news on sector brings 2% fall .
Why would one average out for a company or firm that is not doing good or making losses ???
Average out is a good idea but it has asterisk attached to it
I have been in Markets from 8 years and i have got the transition from 2 generations of Market - they never told avoid averaging - They always told me one thing - Enter with only 25% in non f&o stock if f&o 50% of whatever i want invest.
Then at every 1% down I'll add 10% of remaining 50% so from the top i have added 50% at 10% lower the entry..
A good video i must say but i will always prefer stocks. AI stocks will dominate 2024. Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.
I agree, just because the market presents opportunities doesn't mean we should rush in headfirst. For this reason, we should look for appropriate market analysis or guidance or, alternatively, seek advice from certified market strategists.
Having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
One of my goals is to employ the service of one this year. I've seen some off Facebook but wasn't able to get a response. Could you recommend who it is you work with?
Marisa breton Dollard is Well vast and established in that field. You may look up the name and possibly shoot her a mail
@@HilaryPhan I find this informative, curiously explored Vivian on the web, spotted her consulting page, and was able to schedule a call session with her, she shows quite a great deal of expertise from her resume.. very much appreciated
We can use an inverted pyramid for a downward average for good fundamental stocks ...
I am doing averaging when the stock is going up
In pyramiding you grew the stock by 50% and by 100%. And as mentioned by you, you only do it for nifty 200. The companies in Nifty 200 generally take more than 3 years to grow by 100%.
First one must decide if they are investors or traders... averaging is a good strategy if you are an investor and holding dividend yielding stocks...
SIP also one of the averaging concept, just we need to pick good fundamental stock and good segment and SIP for 10 years to grow your money along with their business.
Hi friend, while pyramiding , what if the price of a stock falls below the first bought price ?. So, after studying the history of the stock movement, it's better to average the stock price as it falls & someday it starts recovering & can make profits.
Agree with you on individual stocks, but averaging is good in mutual funds.
I agree with you. It is the right approach
Good video.I
Thanks
Great job 👍
Does Averaging works in mutual funds ?
i am swing trader and i always average and come out safely. one just needs patients.
Bro you shouldn't average at 90 or 80. You should only average at the next support point. Buying stock at every 10% dip is not averaging bro, no one would do that.
I did this pyramid investing in downtrend to reduce the avge. I tried ,out of total shares ,freshly added 5 to7 %. More than this percentage results not worthy. Once prices breakthrough your in next uptrend,u have to exit fully. Not part by part. Coz,FIFO (First in First out ) shares will reduce in this formula.
I agree and i dont agree as well.... averaging is needed when you have a fundamentally strong share in your portfolio which is falling ... it will give high returns when stock gains speed again... so averaging is not bad... only bad when fundamental of that sto k is poor...
Other side, pyramiding always needed when the same stock starts growing up... that way i get benefit of both sides..
So all in all, what is most important is that i should have enough money to invest in any situation
Upward averaging can wreck holdings if a bearish move occurs... Same for downward averaging.
The only thing to consider for averaging is to do it only when you do not see any other better stocks in the market.
Very good idea sir
When can we expect the continuation for Stock market A-Z course?
Convincing arguments against averaging and in favour of pyramiding. But, wait for a second, stop loss is a bad idea for a long-term position holder one would lose more often(small loss limit) or a one-time loss (big loss limit). I have learned that if a company is a reputable and established entity, only then averaging is not a bad idea but if it drops by 25% or more. If it is not take the loss max. at 25% and run with your money. One scenario you can not avoid is if the stock suddenly falls 40-50% in a single day or abruptly. The bottom line is to never use averaging on a sick horse; which likely end up in bankruptcy or accrue further losses. Pyramiding is also not very safe, stock in an uptrend is more likely to reverse its trend. Recently, markets in general become less predictable and more ruthless.
The only time averaging will fail is if the company is going to be closed, other wise it is the best strategy. Stop loss is the strategy you only make loss
Hey Ajay
Good stagey
I am hearing this is the first . If I already heard about it I won't invest huge money in falling share Like delta corp and bcg.
If you don't mind can you give me a suggestion
Very nice informative and helpful video 📹
Stage the stock... Upward trend, down ward or consolidation.. Correlate technical with fundamentals.. Average only it is in consolidation for good companies or start moving up from consolidation...
Now look at polyplex stock..
Fall completed, from consolidation it is going up... U can upward average
Good fundamental buisness. At cheaper valuation. You can average it partially according to quarterly report.
I have been doing pyramiding without knowing the term just by common sense and getting good profits😊
Very good advice indeed. Thank you.
Good One. Thanks
Then the concept of Every dip is an opportunity is failed?
Bro pls show when the share coming downwards.
Also, if it is a fundamentally good stock, I don't like the idea of 'pyramiding'. If you have done your due diligence and find the stock good, you should buy the stock in every dip. Not sure why need to stagger the purchase
Not clear,,what to do in case of falling stock values? What he said is buying smaller quantity in case of rising stocks,,, that's good, I used to do it,,but in case of fundamentally strong stocks, loss averaging is a good technique for the long run. In case of losing stocks, I try to get it out or hold it for the next happenings,,,of course for good stocks.