The journey of Rakesh Jhunjhunwala is well-known in the Indian Stock Market. It is interesting to know how he made Rs. 41,000 Crore as of December 2021, starting from just Rs. 5000 in 1985. Do you also want to invest like the ‘Big Bull’ but are not sure how to go about it? Read on!
How Did The ‘King of Dalal Street’ Enter The Stock Market?
Rakesh Jhunjhunwala’s story is quite interesting and can make you learn about the stock market a lot. He is a chartered accountant by education and had started investing in the stock market during his college days. His first big win came when the shares of Tata Tes rose from Rs. 43 to Rs. 143 within just 3 months in 1986, leaving him with a profit of Rs. 5 Lakh. Staggering right? But how did he do this? Which stock market techniques does he use? Let’s talk about Rakesh Jhunjhunwala investment strategy in detail below!
Tips and Techniques Given By Rakesh Jhunjhunwala
Following are some strategies that the ace investor himself suggests people use on an online investing platform –
- Long Term Investments
Rakesh Jhunjhanwala believes in long-term investments. According to him, you need to give time to your portfolio to mature. Picking the right stock is not enough if you are not holding them for a long time.
- Avoid Sentiments
Sentiments never work in the stock market – be it fear or greed, they only call for a doom. Avoid panic selling during a recession or buying too much just because the prices are low. Also, don’t blindly follow the herd or come under peer pressure when it comes to trading in the stock market. Always trade with a calm mind and with a practical approach.
- Master Your Research
Don’t buy something just because others are buying it. Mr. Jhunjhunwala advises that good marketing research is important before investing in any stock. You should never put your hard-earned money without knowing the key details about the company, its prospects, as well as its past performance. The market cannot be treated as a place to make quick money or gamble. Always make an informed decision based on facts and research.
- Don’t Rely Only On Historical Data.
There is no doubt about the fact that historical data plays an important role, but it is also true that the performance of a stock is not only about its past trends. According to the trade mogul, you should never entirely depend only on a stock’s past data because it may or may follow the same trajectory. This is because the performance of a stock depends on a multitude of factors such as the economic conditions, the geopolitical environment, government policies, the company’s financials, its leadership, and many more.
The stock market is no gamble; it is all about proper research and acting in the right manner at the right time. There is a lot we can learn from Rakesh Jhunjhunwala’s Investment Strategy, as it helps get the basics correct and lets you know what you should do when you are making a profit!