Learn how to make top rules of stock investing which great investors followed. These rules will help you to become good investor in the long term. Here I will discuss some important rules that the top investors like Warren Buffett followed to make huge income from stock markets. I offer a course on long term investing to retie rich, it is obvious nothing from the course is written here.
Make A Set Of Rules After Experience And Stick To Them
If you do research on successful investors you will find that they made a set of rules and followed them for the rest of their lives. They never deviated from the set of rules whatever happened to markets. These rules were made after a thorough research for years spending thousands of dollars not just sitting in an AC room and looking at charts.
People like Buffet never looked at charts but they looked at current valuations of the stock vs the probability of future valuations. If they were attractive he bought the stocks. Charts do not and cannot predict future valuations, therefore he never bothered about what the charts said.
How to make the rules?
Your initial blunder investing and mistakes you did in investing teaches you a lot. These mistakes thought a lot about setting rules of trading and investing to me too.
You jumped in stock markets trading as soon as your demat trading account was opened, dreaming big. It’s obvious you did a lot of mistakes initially. Make a set of rules on what worked and what did not work, when you traded.
Then do some more research on the set of rules before finalizing them.
Another way to define set of trading rules to ask people who are successful trading and follow them. Some of them give courses as well. Before doing any course you must see testimonials of real clients who have done their course and are doing well or not. If they have a website, their website itself is a good proof of the knowledge they have and their capabilities as a trader.
There is nothing wrong in paying a course provider to do a good course. It takes their time to help you that’s why there is a charge. But the course fee should be affordable and reasonable. Or you can do research yourself. A course saves your time and money to do research.
It took me more than 2 years and 3 lakhs to make this conservative strategies course. Since its your money I leave it to you if you want to do my course or not. You can see testimonials and decide yourself.
Patience Is Important
When I was a intraday day trader I was very impatient. As soon as the trade got completed, I used to keep looking at the trade to see whether it was making a profit or not. If it was not making a profit I used to take a stop loss within 5 minutes.
The above is not trading, its gambling. There is less than 1 percent chance that a gambler makes money. Obviously I too lost money.
If you are an impatient trader you will never make money.
Dennis Gartman, a very successful investor once said, “Be patient with winning trades, be enormously impatient with losing trades. Remember it is quite possible to make large sums trading/investing if we are ‘right’ only 30% of the time, as long as our losses are small and our profits are large“.
If you are impatient it is better to hedge your trades. Hedging makes sure your losses are capped, as a result over a period of time your profits exceed losses. My course has strategies which are fully hedged to cap losses.
Read what he said carefully, there is a high chance that you too do the same mistake in your trading career therefore you lose money. 95% investors make this mistake and lose money.
Let wining trades run. Do not sell as soon as you see profits coming. On the other hand br very strict with your stop loss.
Whatever stop loss you have set, be impatient as soon as the stop loss is hit and exit the trade.
Good traders are ok with losing some money but are not at all ok with losing a lot of money in a single trade.
The money you make in winning trader must far exceed the losing trade loses
Warren Buffett – The Legendry Investor of All Times Said This – “It’s Far Better to Buy a Wonderful Company at a Fair Price than a Fair Company at a Wonderful Price“.
I personally follow this since the day I read it. Another great thing he said was:
“Buy When Everyone is Selling and Sell When Everyone Is Buying“.
I follow this as well.
Mr. Buffett talks, world markets move based on his words. In fact governments appointed persons managing finances of a country leave everything aside to listen to what Warren Buffett says. His words are so powerful.
The letter to his investors are included in college finance classes in the largest and most prestigious universities in US and many other countries.
His basic principles of Investing is:
1. When evaluating a company, look at the quality of the company and the price. He mostly used to see the company’s balance sheets, listen to conference calls and the way management worked. After this he used to evaluate the price of the stock.
If the company looked good, he bought it. Price for him was secondary.
If the company looked bad, he never bought it even if the price of the stock was cheap.
Bill Gross a Fund Manager says, if you like a stock do not put more than 10% of your investment capital on it.
However here is where I differ slightly explain in my invest well course.
Diversification is Good, but too much diversification is not.
Some of your chosen stocks give great opportunities to buy. Always keep some money on hold to invest in these stocks as soon as you get the opportunity.
Prince Alwaleed Bin Talal – an investor from Saudi Arabia and founder of Kingdom Holding Company once said, “We’re getting hurt, but I’m a long-term investor“.
How true is that. Let us go back to 2008 when recession stuck stock markets all over the world and 99% people backed out of stock markets making huge losses. I was too one of them.
But just imagine people such as Prince Alwaleed Bin Talal, he am sure may not have taken out all his investments, in fact would have bought more especially those companies that were high in quality. Today he must be making millions of profits.
Most of the investors who lost a lost of money in that period must have still not received their money back. He has a lot of real estate investments in India as well. Not sure how his real estate business is doing.
Carl Icahn, a big investor in companies such as Time Warner, Yahoo never listens to his friends or brokers or tip providers. He once said, “You learn in this business, if you want a friend, get a dog.”
Indirectly he is saying do not listen to your friends as far as investing is concerned. Its is not a personal thing. It is good to have friends for social gatherings and fun but it is better to avoid their advice on investing.
Carlos Slim, also a great investor looked for investing in companies with a great growth potential in future. Like what Warren Buffett did with Coca Cola – his biggest investment till date.
No one was willing to buy Coca Cola, but Buffett bought and made millions.
Carlos Slim says that do not look what is happening now, instead try to figure out what may happen in the future to this company.
Basically he used to invest in mid-cap and small-cap companies.
It is always good to follow legendary investors.
After a lot of research I have made a course on long term investing and financial management. You can read about the course here.
You Can Read More On My Site
Hi, I am Dilip Shaw, owner of this website. I am a trader like you. I have been trading since 2007, but lost a lot of money till 2010. I then stopped trading and studied options like college exams. Started trading again from 2011 and never looked back since. I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here.
My conservative trading course since 2014 is helping many retail traders just like you who have a job or business make consistent profits like this:
What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020 to 2023
What People Say Just After Reading My Course
Emotional Testimonial by a Young Woman Trader and Her Mother
One Of My Client Is Making Rs.25k Per Week
Difference Between Other Courses And Mine
What Others Charge for Courses
You can do this course from your home. Some traders make amazing profits like Rs. 16.26 lakhs profit in 5 days though results may differ for all.
This course helps you learn to trade conservative option strategies for monthly income. Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.
This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second.
What You Get?
Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed.
You get two conservative non-directional strategies on options, one conservative stock option strategy and two conservative directional strategies on Future & Option combination.
Non directional trades are profitable 80% of the times and make 3-5% per trade (Results may vary).
Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. 🙂 Some amazing profits possible here.
The stock option trade makes 30,000 in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.
Technical knowledge is NOT required. No need to monitor trades every second.
In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss – means how to get that money back. The success rate is more than 80%.
Since trades are properly hedged there is no stress in trading my strategies.
I am very confident that you will make money trading my strategies. To help you succeed I offer few months support for FREE.
11 Reasons Why You Should Do The Course:
1. TA Knowledge NOT required
2. NO Software Required
3. Regular Monitoring NOT Required
4. Continue with Your Job
5. Do Course From Your Home
6. 100% Hedged
7. Stress-Free Trading
8. Not too much money needed to trade
9. Scaling Possible
10. One Time Fee
11. FREE Support For Months
To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.
Read the details of the course here.
If you want to enroll for the course you can do so here.
P.S: So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. It never happens. But small money accumulated month after month can become very big in only a few years.
WhatsApp or Call me: 9051143004
If you have any question you can contact me.
You can read about me here and my trading mistakes here.
Dilip Shaw, Founder
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INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.
DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. In other words I am a sub-broker. I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other forms of social media. I strictly adhere to laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles in this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given in this website. I am not responsible for any investment decision you take after reading any article in this website. Click here to read the disclaimer in full.