Price to Earnings Ratio & FOMO - Part II


Coming back to our previous topic. How to construct your portfolio? Currently as the share market is at a higher valuation you can invest around 15% to 20% of your portfolio amount in the share market, other 20% in Gold and Silver. This will help you in getting out of FOMO. So if the market goes bullish from here then you will earn a good profit later and if the market falls then you can further increase your investment here as you had not invested the entire amount previously. Then if the market goes in the uptrend, you will earn a good profit there.


Now, where should you invest in the Equity market? We have mentioned in many of our previous videos that if you are investing directly then you should invest in only those companies that have a sustainable competitive advantage. If you are investing indirectly via Mutual Funds then we have already covered this topic in our previous blogs. Do check it out. If you wish to make an indirect investment then you can invest in Nifty, Nifty Bees, Junior Bees, etc. But you should make this investment depending upon the market valuation. When the market valuation is high, invest less and when the market valuation is low, you can increase your investment in the equity market. This was all about investment.


Now talking about trading, the level of 10,562 acts as an important level for Nifty. Till the Nifty is above this level, the market is in uptrend. So technically the market is in uptrend but fundamentally the market is expensive. Due to this, if Nifty continues to remain in uptrend in the near future then you can trade in those shares that are in uptrend and have just come out of the box. Now if you want to know more about this box technique then we have already uploaded two blogs previously on this topic. Do check them out. So you can trade in those shares which have come out of the box by keeping a stoploss and trade with minimum capital as market valuation is currently expensive.


While trading technically, which share should you invest in? Currently the IT Index is going in an uptrend. Last time we had talked about L&T InfoTech limited. Now, HCL Tech has given an uptrend signal by coming out of the box. Till the time HCL tech is above Rd. 544, it will remain in uptrend. So here you can trade with limited capital till HCL and market seem to be in uptrend. Also, as you can go wrong anytime, hence invest minimum amount there. Otherwise you would blame us.


Last week the American share market Dow Jones had witnessed a fall and due to this the next week initially may start on a negative note. But till the time Nifty is above the mark of 10,562 market is in uptrend. So technically even though the market is in uptrend but fundamentally the market valuation is expensive. Hence, even if you are trading or investing in the market, keep your investment minimum while buying in the market. Also while trading make sure to follow the stoploss. In this blog we have covered hoe to chalk out the investment or positional trading strategy by keeping in mind the market valuation and trend analysis.


If you personally wish to learn the box technique then for that you can download our Aryaamoney app and subscribe to our Smart Investor program to learn the Box Technique. With this subscription you also get a complete hand holding support for 60 days along with a technical tool as well.


If you wish to learn the strategy for long-term investment spanning around 5 years or more and wish to become a professional investor then give us a call on 09922092369 to know more about it. If you wish to open your Demat account with one of India’s leading brokers the we have mentioned the link for the same in the description below. Do have a look.


The American - British Economist and Investor Mr. Benjamin Graham quotes, “In the short-run, the stock market is a voting machine while in the long-run it is a weighing machine.” So if you wish to become a successful investor then investing based upon market valuation is very important.


Until our next blog…


Happy Trading, Happy Investing!!!



To open your Free Demat & Trading Account with Upstox, click here -


To subscribe to our YouTube channel, click on this link -


To watch our video on Price Earning Ratio & FOMO, click on this link –


Follow our Official Social Media pages-

Facebook -

Twitter -

Linked In -


To Download the AryaaMoney Mobile App (Android Version) Click on This Link –

Stock Market T+1 Settlement Cycle in India Active v/s Passive Investing - Which is Better? HDFC & HDFC Merger Sri Lankaʹs Economic Crisis Warren Buffet Timeline Russian Stock Market Index Best Share Market Quotes What is Dividend in Share Market? Best SIP to Invest in 2022 Share Market in Hindi What is Share Market? Best Mutual Funds to Invest in 2022 Story of Warren Buffet & Bill Gates’ First Meeting Share Market Holidays – 2022 How to Invest In IPO’s – 2022 ? Best Share Market App What are Penny Stocks? What is Candlestick Chart Pattern? Systematic Invest Plan (SIP) What is Market Capitalization? How to Start Investing in the Share Market? Share Market Crash 2021 Quarterly Results Trading Strategy Which Shares to Buy After The Budget? What is Sensex & Nifty? - Part II What is Sensex & Nifty? - Part I How to Find Out Whether Share Market Valuation Is Expensive or Not? How to Find the Best Shares For Long-term? Chart Patterns Study Share Market News Chart Patterns - Trading Strategies Investing Based Upon Business Model of Companies Return on Invested Capital and Durable Competitive Advantage Learn Technical Analysis With Example Warren Buffet Indicator Explained Techno – Fundamental Analysis How to Invest When Nifty PE Ratio Has Gone Beyond 30? - Part II How to Invest When Nifty PE Ratio Has Gone Beyond 30? - Part I Price to Earnings Ratio & FOMO - Part II Price to Earnings Ratio & FOMO - Part I Where Can We Expect a Big Boom in the market? Stock Market Analysis – July 2020 Stock Market for Beginners – Dr. Vivek Bindra – Part II Stock Market for Beginners – Dr. Vivek Bindra – Part I Stock Market Analysis – June 2020 Is the Next Debt Crisis Coming Soon? Next Stock Market Crash Prediction How to Grow Your Money via Mutual Funds? Role of Price & Earning in the Stock Market – Fundamental Analysis Share Market Trading Guide How to Make a Successful Investment Decision? Why & How Did Ajay Lose Money In The Share Market? Which Is More Profitable – Gold or Share Market – Part I Share Market Crash 2020 What is Short-Sell? - Part II What is Short-Sell? - Part I Pump & Dump Scam Stock Market Strategy Rakesh Jhunjhunwala Stock Market Strategy Which is the Best Mutual Fund to Invest In? – Part 2 Which is the Best Mutual Fund to Invest In? – Part 1 4 Step Market Analysis What is Short-term & Medium-term Trading? Basic Financial Planning Bitcoin & Cryptocurrency The Warren Buffet Indicator How to Make a Huge Amount of Money??? Rakesh Jhunjhunwala - Case Study Share Market Tips!!! Be Aware!!! Can Intra-day Trading Make You an Over-night Millionaire? Yes Bank & DHFL – Case Study Where To Open Demat & Trading Account? Inspiring Story of a Dancer Who Made $ 2 Million From The Stock Market!!! Part II Jackpot Trading - Case Study Jackpot Trading How to Cut Your Losses Short? How to Make Money during Recession? Modi 2.0 Inspiring Story of a Dancer Who Made $ 2 Million From The Stock Market!!! Part I Can You Become a Millionaire By Forex Trading? Great Ways to Learn Stock Market How to start Investment in Share Market How to Choose Stocks for Long Term Investment Share Market Tips and Investments Top 5 Ways to assess Stock Market Performance The Magic of Math in Stock Market Trading Stock Market Terms Every Investor Should Know The Golden Rules of Investing Why you should choose ARYAAMONEY for share market tips Stock Tips that should be followed by New Investors