Here is An Interesting Investment Strategy for busy corporate employees. We recommend you to read it, benefit from it and share it with friends too.
1️⃣ Identify the Key Prices
First note two numbers:
- 52-Week High (H)
- 52-Week Low (L)
Then calculate the price range:
Range = H - L2️⃣ Divide the Range into Accumulation Zones
You can split the range into 4 buying levels.
| Level | Formula | Meaning |
|---|---|---|
| Buy 1 | L + 25% of Range | Deep value zone |
| Buy 2 | L + 40% of Range | Value zone |
| Buy 3 | L + 60% of Range | Fair value |
| Buy 4 | L + 75% of Range | Momentum entry |
3️⃣ Capital Allocation Strategy
Do not invest equal amounts at each level. Allocate more money when price is cheaper.
Example:
| Level | Allocation |
|---|---|
| Buy 1 | 40% |
| Buy 2 | 30% |
| Buy 3 | 20% |
| Buy 4 | 10% |
This reduces average buying price.
4️⃣ Example (Hypothetical Stock)
Suppose a stock has:
- 52W High = ₹1000
- 52W Low = ₹500
Range = 500
| Level | Calculation | Buy Price |
|---|---|---|
| Buy 1 | 500 + 25% × 500 | ₹625 |
| Buy 2 | 500 + 40% × 500 | ₹700 |
| Buy 3 | 500 + 60% × 500 | ₹800 |
| Buy 4 | 500 + 75% × 500 | ₹875 |
Investment example (₹1,00,000):
| Level | Price | Investment |
|---|---|---|
| Buy 1 | ₹625 | ₹40,000 |
| Buy 2 | ₹700 | ₹30,000 |
| Buy 3 | ₹800 | ₹20,000 |
| Buy 4 | ₹875 | ₹10,000 |
Average cost becomes much better than buying all at ₹875.
5️⃣ Extra Rules for Better Results
✔ Only use this strategy for fundamentally strong companies
✔ Avoid buying near 52-week high unless growth is strong
✔ Recheck earnings, debt, and sector trend before final buy
✔ If price drops near 52-week low, you can accumulate more aggressively
💡 Pro Tip:
Many professional investors accumulate between 30%–60% of the 52-week range.
✓ Follow #infostockIndia on social media platforms
✓ Share it with friends and book a free copy of our Next Fundamental Research Report
✓ Subscribe Infostock Equity Report
No comments:
Post a Comment