Some of you might know that I am following the ETF Strategy where I am buying the single ETF everyday which is less than or little variation of 20 Daily Moving Average and I sell when it is up by 5%. I have started with 1 Lakh capital that means I am buying for Rs 2K everyday. And I am putting that money back to the market to get the compounding effect. And also if it goes down by 2.5% I will buy it again.
The last 1.5 months I have been accumulating and almost 84% of my money was in market, I.e. I have invested 84K out of 1 Lakh and yesterday was the day I sold 2 of my ETF at 5% profit and today also I have sold 1 ETF at 5% profit. So yeah I got the profit after 1.5 months but the good thing is in this tike period Nifty 50 have given negative returns.
At one time almost 50% of my ETFs have been negative and my notional profit has gone down by almost 1%. And also I got some ETFs which has gone down by 2.5% and because of that I have bought some ETFs again. So that's actually good thing because I was buying at the bottom and thus accumulating more and more. The CAGR is around 4% but that is good considering Nifty 50 have given negative returns in the same period.
But I think that's actually what this ETF Strategy is all about where I can now buy some ETFs for lower amount and can Average it but sell only that lot which has reached 5% instead of selling everything. But for me I will sell 1 ETF at the time even if I bought it multiple times. And the best thing about ETF is that it cannot go down drastically and getting 5% profit is not a big deal.
Till now the strategy is working fine, let's see till the end of this year and see whats the outcome. I will try to double the capital if I see the coming months to be good. And thus I will double my investment and try to get more profit as and when it when the market goes towards bull.
