{"id":2340,"date":"2021-02-05T16:18:00","date_gmt":"2021-02-05T16:18:00","guid":{"rendered":""},"modified":"2025-11-07T11:32:54","modified_gmt":"2025-11-07T06:02:54","slug":"how-to-make-money-in-stocks","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/how-to-make-money-in-stocks\/","title":{"rendered":"How to Make Money in Stocks? – Research & Ranking"},"content":{"rendered":"
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With Indian benchmark indices the BSE Sensex<\/a> and the NSE<\/a> Nifty<\/a> hitting new historic highs in the last few days many stocks have generated good returns for patient investors and they were able to make money in stocks.<\/p>\n\n\n\n

In a span of fewer than 11 months stocks like Bajaj Finance, Tata Motors, Maruti Suzuki, Larsen & Toubro have generated anywhere between 2-5 times returns.<\/p>\n\n\n\n

Stock name<\/strong><\/td>Price on 23rd<\/sup> Mar 2020 (Rs.)<\/strong><\/td>Price on 04th<\/sup> Feb 2021 (Rs.)<\/strong><\/td>Gains in Rs.<\/strong><\/td><\/tr>
Bajaj Finance<\/td>2266<\/td>5504<\/td>3238<\/td><\/tr>
Tata Motors<\/td>66<\/td>326<\/td>260<\/td><\/tr>
Maruti Suzuki<\/td>4220<\/td>7640<\/td>3420<\/td><\/tr>
Larsen & Toubro<\/td>724<\/td>1530<\/td>806<\/td><\/tr>
Ashok Leyland<\/a><\/td>36<\/td>136<\/td>100<\/td><\/tr>
Avenue Supermarts<\/td>1820<\/td>2960<\/td>1140<\/td><\/tr>
Infosys<\/td>526<\/td>1279<\/td>753<\/td><\/tr>
ITC<\/td>154<\/td>230<\/td>76<\/td><\/tr>
L&T Infotech<\/td>1293<\/td>4297<\/td>3004<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The stocks listed in the above table don\u2019t belong to just one or two sectors but from different sectors.  Tata Motors, Ashok Leyland and Maruti Suzuki belong to the auto sector whereas Infosys and L&T Infotech are from the IT sector. Avenue Supermarts is from the FMCG sector and Bajaj Finance from the NBFC sector.<\/p>\n\n\n\n

These are not just numbers. It is a testimony to how smart investing<\/a> can help one make money in stocks.<\/p>\n\n\n\n

However, as always, many investors who waited on the sidelines in the hope of the right time to invest lost out on these phenomenal gains.<\/p>\n\n\n\n

The perfect recipe to make money from stocks is to ‘buy low and sell high’. However, in reality,  is just the opposite. When stocks are on sale due to a market correction or a crash, investors panic and sell their holdings. On the other hand, when markets are on the rise, investors jump in hordes to ride the wave.<\/p>\n\n\n\n

Let’s take a look at some of the biggest reasons why most investors are unable to make money in stocks.<\/p>\n\n\n\n

Waiting for the market correction to end<\/strong><\/h3>\n\n\n\n

When markets are on a correction mode, many investors wait on the sidelines hoping for the markets to bottom out.<\/p>\n\n\n\n

“Let the market correction end.”<\/p>\n\n\n\n

“By waiting we will get this stock for a lower price after few days.”<\/p>\n\n\n\n

These are some of the excuses quoted by investors as they wait for a further correction before investing. However, such investors are caught unaware when the cycle suddenly changes and thus miss out on investment opportunities when stocks are available at discounted prices.<\/p>\n\n\n\n

On the other hand, smart investors who know how to make money<\/a> in stocks, accumulate stocks during market corrections in a staggered manner and hold them over time.<\/p>\n\n\n\n

Investing blindly during a bull market phase<\/strong><\/h3>\n\n\n\n

When markets are going through a bullish phase, investors blindly rush in to ride the wave. In the greed to make money from stocks, fundamental investing often goes for a toss.<\/p>\n\n\n\n

As a result, investors invest in stocks that are highly overvalued or have no real value associated with them but are just riding on the euphoria generated by the bullishness in the market.<\/p>\n\n\n\n

Not seeing instant results in their stock portfolio<\/strong><\/h3>\n\n\n\n

Smart investing is boring. Many successful investors have compared it with watching the paint dry or grass grow. Both of these activities are very slow in nature. Despite investing in good stocks, when some investors see no visible price moments on a day-to-day basis, they feel that they have invested in the wrong stocks and end up selling it.<\/p>\n\n\n\n

The desire for excitement drives such investors. In the process, they end up making wrong investment decisions without realizing that real money is made over time when the power of compounding<\/a> kicks in.<\/p>\n\n\n\n

Now that you have discovered the top reasons why most investors are unable to make money in stock<\/a> market let’s look at the solution.<\/p>\n\n\n\n

How to make money in stocks with smart investing?<\/h3>\n\n\n\n

Volatility is a regular part of the stock market<\/a>. Accept it or not, there are many factors beyond investors’ control, which cause stock market volatility<\/a>. It could be anything ranging from domestic, global<\/a>, economic or political factors which cause market volatility.<\/p>\n\n\n\n

While market ups and downs can cause variations in prices of stocks, it does not alter the fundamentals of quality stocks in any way. Fundamentally sound stocks which have a very high potential can quickly bounce back in 6-12 months, thus delivering potential returns of 25-50%.<\/p>\n\n\n\n

By investing in quality stocks trading below their intrinsic value, investors can make money smartly by capitalizing on the price difference from their real value.<\/p>\n\n\n\n

Research & Ranking\u2019s Mispriced Opportunities Strategy is one such powerful strategy which allows investors to capitalize on the price variations caused by the market volatility by investing in stocks which are trading below their intrinsic value due to temporary hiccups in the market or the industry where it belongs to.<\/p>\n\n\n\n

Success stories of past recommendations made under the Research & Ranking\u2019s Mispriced Opportunities Strategy<\/strong><\/h3>\n\n\n\n

Hero MotoCorp<\/strong><\/p>\n\n\n\n

Hero MotoCorp is the world\u2019s largest two-wheeler manufacturer with a market share of over 46% in India. Recommended on 19th<\/sup> April 2020 under the Mispriced Opportunities Strategy, this stock generated a return of 31% in just 40 days.<\/p>\n\n\n\n

Kansai Nerolac<\/strong><\/p>\n\n\n\n

A subsidiary of Japanese paint company Kansai Paints, Kansai Nerolac Paints is India\u2019s largest industrial paint and third-largest decorative paint company. Recommended on 22nd<\/sup> May 2020 by our research experts, the stock generated an impressive return of 29% in just 41 days.<\/p>\n\n\n\n

Varun Beverages <\/strong><\/p>\n\n\n\n

Varun Beverages, a significant player in India’s beverage industry, is the 2nd<\/sup> largest franchisee globally for PepsiCo\u2019s carbonated soft drinks and non-carbonated beverages outside America. Recommended on 28th<\/sup> July 2020 under the Mispriced Opportunities Strategy, this stock generated a whopping return of 42% in just five months.<\/p>\n\n\n\n

Endurance Technologies<\/strong><\/p>\n\n\n\n

Endurance Technologies is India\u2019s largest aluminium die-casting company and the largest 2 & 3-wheeler auto component manufacturer in India. Recommended on 23rd<\/sup> Oct 2020 under the Mispriced Opportunities, the stock of Endurance Technologies delivered an impressive return of 41% in 75 days.<\/p>\n\n\n\n

For complete details of performances of past recommendations made under the Mispriced Opportunities Strategy check out the below table:<\/p>\n\n\n\n

 <\/td>Date of recommendation<\/td>Date of Exit<\/td>Buying price<\/td>Exit price<\/td>Duration<\/td>Gains in %<\/td><\/tr>
Hero MotoCorp<\/td>19th April\n

 <\/p>\n

2020<\/p>\n<\/td>

28th May\n

 <\/p>\n

2020<\/p>\n<\/td>

Rs. 1806<\/td>Rs. 2361<\/td>40\n

 <\/p>\n

Days<\/p>\n<\/td>

31%<\/td><\/tr>
Kansai Nerolac<\/td>22nd May\n

 <\/p>\n

2020<\/p>\n<\/td>

2nd July\n

 <\/p>\n

2020<\/p>\n<\/td>

Rs. 360<\/td>Rs. 463<\/td>41\n

 <\/p>\n

Days<\/p>\n<\/td>

29%<\/td><\/tr>
Emami<\/td>12th Dec\n

 <\/p>\n

2019<\/p>\n<\/td>

26th Aug\n

 <\/p>\n

2020<\/p>\n<\/td>

Rs. 310<\/td>Rs. 360<\/td>8\n

 <\/p>\n

Months<\/p>\n<\/td>

16%<\/td><\/tr>
Varun Beverages<\/td>28th July\n

 <\/p>\n

2020<\/p>\n<\/td>

16th Dec\n

 <\/p>\n

2020<\/p>\n<\/td>

Rs. 688<\/td>Rs. 974<\/td>5 Months<\/td>42%<\/td><\/tr>
Page Industries<\/td>18th Aug\n

 <\/p>\n

2020<\/p>\n<\/td>

17th Dec\n

 <\/p>\n

2020<\/p>\n<\/td>

Rs. 19101<\/td>Rs. 27247<\/td>4 Months<\/td>43 %<\/td><\/tr>
SBI Cards<\/td>28th Feb\n

 <\/p>\n

2020<\/p>\n<\/td>

2nd June\n

 <\/p>\n

2020<\/p>\n<\/td>

Rs. 700<\/td>Rs. 611<\/td>96 Days<\/td>-13%<\/td><\/tr>
Endurance<\/td>23rd Oct\n

 <\/p>\n

2020<\/p>\n<\/td>

5th Jan\n

 <\/p>\n

2021<\/p>\n<\/td>

Rs. 1009<\/td>Rs. 1418<\/td>75 Days<\/td>41%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Research & Ranking\u2019s Mispriced Opportunities Strategy offers investors a unique strategy to make money from stocks by investing systematically in 10-12 tranches that too for as low as Rs. 10,000 each month.<\/p>\n\n\n\n

Key Features of Mispriced Opportunities Strategy<\/strong><\/h4>\n\n\n\n