Day 10: Journey to wealth creation and humble life | Return simulation | x to 1000x

Okay, so I am writing the post after a week from my previous one, and here is the reason why.

So finally I have created a very basic model to invest. The idea is to keep updating the model as I learn better and keep investing to test it out as well.

Here are couple of things I check based on the model numbers.

Invested 50 Quantity each of

1. Cyient

2. Jyoti Resins

An important lessons which I have learnt in last 1 week is always believe in a model and adhere to it. While investing in Cyient, I overlooked 2 things

1. SSGR < Sales Growth (one reason to avoid a stock. I now see the mistake.)

2. I will observe the stock for next few days and if the loss is more than 8% of my investment, will sell it.

Here is the list which should pass.

1. Jyoti Resins passed 9/10

2. Cyient failed by 1/10

I should have been more observant.

This list will now onwards acts as the guiding light. This list will improve as we observe and figure out more strategies.