So I have recently created a Video about the Version 2 of the swing trading. In this swing trading, we will be using Equity ETF, Gold/Silver ETF and Top 10 Nifty 50 stocks. So what we will be doing is we will buy 1 Equity ETF, 1 Gold/Silver ETF and 1 Top 10 Stocks which has fallen the most by their 20 DMA.
I have created the Google sheets for the same. This actually gives you the more diversified approach in investing because you are investing in the equity etf, gold/Silver etf as well as Top 10 stocks. And once you have it, we will buy again when it falls by over 3% for ETF and 5% for stocks. This is because the stocks are more volatile than the ETF and that's why we have kept 5%.
Like now the market has fallen a lot. And thus it is a good time to invest in the market. It can go down more, but this is the time to buy because as of today the Nifty 50 has fallen by over 10% and it might go down further. So investing now is actually a good thing and continue buying if it goes down.
This is where, the ETF swing trading makes sense because we will be buying and averaging more and more. Like if I take my example, I am buying more and more now, like I liquidated some of my FDs which was kept just like that. I started investing now in the market in phased manner by using this swing trading. Because it is giving me more than 10% returns where as the FD returns are less than 5% after removing the tax.
Yeah it is not that safe but still keeping it for longer term makes sense because it gives some good returns.
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