It’s not the thinking that makes the money, its the sitting.
Jesse Livermore
Whether you’re starting new in the stock market or sitting on a large capital to be put into a portfolio, there are several ways to do instead of just putting all your money into a Mutual Fund or an Index ETFs.
Building a Cash Portfolio doesn’t need much of your attention on daily or full time basis and can be done on weekends, though you need to punch the orders on Monday!
The caveat is that you need to know a bit of Technical Analysis, some basic setups and a screener to get the job done. All this doesn’t take more than a day to learn and setup. The cost breakup would be something like :
- Technical analysis course : Rs.3000
- Basic Screener : Free
- Advanced Screener : Rs. 8500
- Charting software : Free
So for less than 15k you can do professional investing and manage your portfolio all by yourself without any outside help or the need of a financial advisor / MF agent. This could be from 10,000 to a crore.
“Waiting helps you as an investor and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that.”
Charlie Munger
If you’re a Technical Analyst, here are some ideas to build a Cash Portfolio. I believe M = Momentum = Money so most of the ideas listed below are Momentum buys with 1 or 2 value buying and a few ETF buying ideas as well.
Investing Ideas
Value buys
- Relative Strength Index on Monthly timeframe of a stock is near 40
- Contrarion Buy : when there has been a record session count of 8-10 red candles on a Weekly timeframe
Investing Ideas
Momentum buys
- Alpha Stocks (leaders)
- All time high
- 52 weeks high
- Multi-year Breakouts
- Cups
- IPOs
- Volume Burst
- Earnings
- Monthly Open = Low
- Stage 2A (institutional buy)
- Stage 2 (retail buy)
“The stock market is a device to transfer money from the impatient to the patient.”
Warren Buffet
Investing Ideas
Out of the box
- Stocks with Highest Foreign Promoter Holding
- Stocks with Highest Indian Promoter Holding
- Index ETFs
- Sector ETFs
- Commodities ETFs
- International market ETFs
Start small but Start today, after all this is going to be India’s century, not just a decade and this is the time to create generational wealth and leave a legacy of intelligent investing with the next generation.
This is my favourite pic of Legendary Trader Jim Roppel who lives by the words on the T-shirt and is my inspiration to sit for the long haul in cash investing to create generational wealth.
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