Let start with some introduction about stock market will there is one top broker and he said 99% traders they don't take move than bank FD return in a period of 3 years time that is very very shocking one.
Don 't even get FD return mean what have you come to stock market everyday I have so many messages. Sir, I lost so many money please give me some money. As I am printing the money. Why people lose so early so much money. Because, they just greeding they just want ultra high return to make 100 crore no. I will explain little later.
There is another broker there 90% of traders lose 90% capital in 90% trading sectors. People who come to stock market. So, they tend to make high risk that make them to lose soo much money but, use for inspiration. I so tell this is the field 99% of people lose money means where are we going to trade. So, I can tell if you have some commonsense you can make money in stock market.
Let's come to our main topic there is a rule of 72.
Formula...
t = 72/r
t = Number of periods required to bubble an investment's value
r = Interest rate per period as a percentage
This is very very very simple. How long your money take to double given or return.
People says two percent is not big 5% is not big but, me it's big 2% per month. It is a very very declined return of one month. For one year it get 24% and that now my question is how long my money change to double that's very simple.
No. of years = 72/ ROI = 72/ 24% = 3
My ROI = 24%
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That mean your money will double in 3 years and remember of if you get 2% per month constantly your money will double in 3 years.
Now I am explained about 72 formula it not an accuracy it only an calculation. Don' t get measure return mean it's ok go slow we can get small return means that's ok not risk grow our money slowly it also good. We get 100 crores in 30 years by 2% return in month.
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Thanks for read my post and welcome again