Not every chart needs a trade. Sometimes the job is simply to identify where the risk/reward starts becoming interesting. While screening for potential shorting opportunities, I came across this setup. The idea was to combine market structure + liquidity + imbalance + trend rather than short simply because price was falling. 🔍 What caught my attention? 1️⃣ Bearish structure Price had already experienced a strong decline and was trading below a downward-sloping moving average. That suggested that the broader momentum was still favouring sellers. 2️⃣ Equal High = liquidity above The Equal High marked on the chart is an area I would watch closely. Rather than assuming resistance will hold, I look at clustered highs as a potential area of buy-side liquidity. A move toward or through that area can become important when assessing a potential reversal. 3️⃣ IFVG — potential resistance The purple Inverse Fair Value Gap (IFVG) becomes the key area I'm watching. If price retraces into this z...
The 8-4-3 rule is a concept used to illustrate the power of compound interest in growing your investments over time.
If we look at it carefully, it is not an investment strategy, but rather a simplified way to understand the potential acceleration of growth.
Let us look at the rule in detail.
It suggests that with consistent investment and a healthy rate of return, your investment might experience the following growth pattern:
- Initial Growth (Years 1-8): You see steady growth in your investment amount for the first eight years.
- Accelerated Growth (Years 9-12): In the next four years (years 9-12), your investment might achieve similar growth to what it achieved in the first eight years.
- Exponential Growth (Years 13-15): In the final three years (years 13-15), your investment might again experience similar growth to the previous four years
When it comes to mutual fund investment, there are two mandatory things:
- Continue your SIPs
- Stay Invested for as long as possible
Once you take care of the above mandatory points, you can move to the next step - optimize returns.
Here are a few things you can do👇🏻
Diversification: Don't put all your eggs in one basket. Diversify across asset classes (equity, debt, gold) and market capitalizations (large-cap, mid-cap, small-cap) to mitigate risk.
Research & Analyze: Research different mutual fund options. Look at factors like expense ratio (fund management fees), past performance (remember, past performance doesn't guarantee future results), and the fund manager's track record.
Asset Allocation: Strategically allocate your investments across different asset classes based on your risk tolerance and goals. Rebalance your portfolio periodically to maintain the desired asset allocation.
Cost Control: The expense ratio is an ongoing cost. Consider low-cost index funds that passively track a market index and typically have lower expense ratios. For active funds, look for funds with the best returns and the lowest expense ratio.
Review Regularly: Periodically review your portfolio performance and adjust your strategy as needed based on your goals and market conditions.
Before you go
Disclaimer
Pls remember investments in mutual funds are subject to market risk.
Kindly read the scheme document carefully.