Hello every one,
I want to share my personal experience in multiplying money.
Before I let you know the formula for money making, I will let you assume a practical example that how the money gets multiply.

If you deposit 5000 bucks every year, for 20 years @ 10% p.a. How much you will get in returns after 20 years can you guess…….?
That means you deposit 5000 bucks every year @10% p.a. for the period of 20 years.
At the end of 20th year you will have 315,012 Bucks!!! It’s 3 times your investment!!

So now I will share with you the success formula of multiplying your money via stock market.

Few things before I start, you need to take of the few things below listed,
1. Patience
2. Implementing the formula as per the rule.
3. Don’t go out of the Box.
4. Don’t be greedy as time goes on.

So here we go now.
Select a stock which should be an integral part of index.
The reason to select the stock from index is because the index stock is very liquid and fundamentally strong stocks.
The stocks must have an intraday moment of at least 2%-5% up or down.
These were the eligibility criteria for selecting the right stock.

Now suppose your selected stock is X and the current value of the stock X is 100 bucks.
And you only have 50,000 bucks with you in your account.

We need to segregate our investment in such a way that we should be able to buy the stocks even if it falls 50% from the current value (100) (i.e. we can buy the stocks at 50 bucks also).

Your capital is 50,000 and the stock value is 100, now 50,000/100 = 500.
You can buy 500 stocks in all.

You have to buy the stock in lot size of 50.
Every 5% fall, you have to buy 50 shares of stock X, and hence you can buy the stock till the maximum fall of 50%.

As the stocks falls you keep buying the lot size. And as the stocks rises 5% you release the stocks. That will keep booking profit at every 5% level rise and fall of the stock.
E.g. Day 1
Stock Value 95, Buy 50 shares.
Day 2
Stock value 90, Buy 50 shares
Day3
Stock value 95, Sell the last buy, i.e. 50 shares bought at 90 and hence you have booked 5% profit.

Keep following this buying and selling and you see enormous growth in your account.

http://sameer17.sulekha.com/blog/post/2008/08/how-to-multiply-your-money.htm