How do we trade in the stock market?
Welcome to the Boring Wealth community!
In this series, we will share our approach to trading in the stock market.
Before we begin -
We are not here to indulge in the ‘get rich quick schemes’ or ‘exciting things’. If that is what you are looking for, this community is not for you.
We also don’t operate with the ‘buy and forget’ lazy approach. We understand that extra gains require putting in extra effort, while continuing with our day jobs.
We believe in a simpler, higher success probability approach and understand that compounding requires time, patience and consistency.
What we don’t indulge in -
Futures and Options
Any kind of margin trading
Short selling
Intraday trading
Penny stocks
Taking a new trade near a company’s upcoming earning results announcement day
Taking a new trade near a major event e.g. upcoming election results day or budget announcement day
With those things clear, let’s understand the things we control and don’t control as a trader in the stock markets. This clarity helps to not stress on a lot of variables which are beyond our control.
What we control
What to buy (Stock selection)
When to buy (Timing of the trade)
How much to buy (Capital allocation)
When to sell (Trade management)
What we don’t control
Will the stock price move in our favour
When will the price start moving in our favour
How much will the stock price move(upwards or downwards)
We have detailed out each component of what we control below -
