Top

Rakesh Jhunjhunwala Stock Market Strategy

 

Do you wish to earn excellent returns in a short span of time? Is it really possible? India’s most successful investor and trader Mr. Rakesh Jhunjhunwala quotes that there was one such incident that proved to be a turning point in his life wherein a day he had earned INR 20 crores just by investing INR 2 crores. How did he do this? Which is that strategy? That strategy is known as an Event-based strategy. What do you mean by Event-based strategy? Let us find out in our today’s blog.

 

Firstly, you need to find out such an event that will have a significant impact on the share market; something that will lead to rapid fluctuations in the share market. So if we invest here after doing a thorough analysis then even we can earn excellent returns within a short span of time here.

 

In 1989-1990 when Mr. Madhu Dandavte had presented the budget of the country; at that time Mr. Rakesh Jhunjhunwala’s net worth had gone up to Rs. 20 crores in a single day. So we need to find such an event that will highly impact the share market and lead to fluctuations in there such as Budget, Elections, etc. After that, if we check the market direction and trade thereafter proper analysis then we too can generate good returns from that event.

 

Let us understand this with a simple example and case-study. In the year 2014 when the Election results were to be announced and when a major political shift was awaited and slogans of ‘Ab ki Baar, Modi Sarkar’, were doing the rounds; so fluctuations in the share market were bound to happen. At that time, we had published an article in the daily newspaper of Maharashtra named ‘Pudhaari’ citing that the momentum of the market is currently positive and hence, if you trade bullish here then within less time, you can generate maximum returns from the market. We ourselves had traded there and earned excellent returns there.

 

Similarly, in the year 2019 when the Budget was presented and when the market momentum was negative and we had traded bearishly there, even during that time we had earned great returns there.

 

If you too wish to earn such excellent returns via carrying-out event-based trading then how do we do it? The first step for that is finding out such an event that will have a significant impact on the share market. Secondly, we’ll have to analyze the market direction and market momentum. So according to the technical chart if the momentum is giving a positive signal then if we trade bullish there then we can earn good returns here. Similarly, if according to the chart we are getting a downtrend or bearish signal then accordingly we can trade bearish and earn good returns in this situation too.

 

While carrying-out Event-based trading if our prediction goes right then we can earn excellent returns there but if our prediction goes wrong then we may have to face a huge loss as well.  

 

So if you wish that your loss should be minimum and your profit should be maximum, then for that you will have to carry out this trade in the options market. What is an Options market? Let us understand. Consider we are buying a lottery ticket by paying Rs. 100 having prize money of Rs. 1 crore. So here if we go wrong, we lose only Rs. 100 here but if our prediction proves right then we may end up winning anywhere between Rs. 10,000 to Rs. 1 crore. That means, here the loss is limited but the profit is unlimited. These things happen in the Options market as well.

 

Now, what is this Options market? What do Call and Put options mean? What are Derivatives and Future market? If you wish to learn this in detail then download our app called Aryaamoney. In the app, there is a free program called Gateway to Wealth, in that we have covered all these topics in a simple manner. Do check it out.

 

In the Future Options market, we can earn more by investing less. But that does not mean we should always go and trade there as high risk is involved here as well. If we trade in the Future and Options without any purpose then later we’ll neither have any future nor will we be left with any options.

 

Smart traders carry-out Event-based trading only when there is an event in the market. If there is no event then you shouldn’t go and trade without purpose. If you wish to become a smart trader then be it Event-based trading or Swing trading and how and when to do it; all such details are explained in our Smart Investor trading program with examples and case studies. Do subscribe to it.

 

Now be it Elections or Budget, by analyzing the market direction and momentum and carrying-out money management, we have earned great returns from Event-based trading.  If you too wish to earn money from Event-based trading then you need to note down one important thing that is if you can earn a good profit here then there is an equal risk that comes with it. So if you can afford the risk or you have previously earned profit from the share market only then it would be advisable to trade here.

 

Until next time…

 

Happy Trading, Happy Investing!!!

 

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

http://upstox.com/open-account/?f=9V8L

 

To subscribe to our YouTube channel, click on this link - https://www.youtube.com/channel/UCiIpSgZ5N_PhTCyb1uQYfnQ/videos

 

To watch our video on Rakesh Jhunjhunwala Stock Market Strategy, click on this link –

https://www.youtube.com/watch?v=KOqXUVaTMQw

 

Follow our Official Social Media pages-

Facebook - https://www.facebook.com/aryaamoney/

Twitter - https://twitter.com/aryaamoney?lang=en

Linked In - https://www.linkedin.com/company/aryaamoney/?originalSubdomain=in

 

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

 https://play.google.com/store/apps/de...

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