Long-Term Fundamental Investing: A Disciplined Approach to Risk and Returns

With the experience I prefer to trade long term fundamental delivery purchase due to low risk and high return.

As you trade frequently for high amount of profit you have to take leverage ultimately increase your risk, as common man we don't have Bloomberg or any fast news gateway and when we receive the news all manipulation or say news based activities over by big players and we faces big loss.

Another thing we skip big chunk of profit by closing position and sudden news came and shares reacted sharply we loose that period by big percentage of gain and ultimately that script we never able to purchase.

So if you trade with affordable quantity and hold it for longer period you make more money without disturbing your slip at night.

For example you want to earn say 20000 either you take position of 1000 shares and sell it Rs.20/= higher that is easiest way and another take 200 shares delivery wait for Rs.100/= gain and sell it. But also think reverse of the same if market goes down by Rs.25/= your loss would be Rs.25000/=, your capital will diminish by that amount and if you have purchased with loan amount than payment of interest will be charged even on loss.

But you invested your own capital your loss would be just 5000 and your capital will not wipe off and you can earn in next move.

Every time you trade government, brokers are partner in any trade even if you are losses, more you trade more payment to govt, brokers and if broker has given target to employee then they will encourage to do more trade.

So better take less risk depending upon your Capital. One thing must be clear your mind that market remained for ever and we should be their and sustain with the market and take out systematic withdrawal of profit from market in any form, so don't follow other trading patter learn from them and decide your trading patter as per your capital, your obligation and above all your nature of trading.

Be disciplined trade in these volatile market.