It's been almost 10 months I have been using the ETF shop and I have done some enhancement for the same. Before going into what enhancement I have done let's go through what is ETF shop. Just like a normal shop where the shopkeeper keeps all the items and sell it for some profit, I am running a shop of ETF where I will buy the ETF and sell it for profit.
ETF because, the probability of ETF going down is almost zero and since it is a basket of stocks so even if the ETF is gone down by 5% we can invest more, because ETF will go up in the future. I have a list of ETF for diversification and I buy ETF every day as well as sell it for 6% profit. Now this is helping me to generate regular income and when the shop will be bigger, it can help me to generate the household expenses. I am actually building this shop to give me regular income and thus someday it can help me to generate some household expenses like a passive income.
I am not thinking such far yet, my main aim as of now if to increase the amount and have more profit and eventually grow this shop. I have completed 10 months in this shop and my profit percentage is around 18% as of today. You might think that 18% is nothing in last year as most of the stock has given 50% to 100%. But trust me, this shop is actually a all weather stock and most importantly I am booking yhe profit. So 18% is my realized profit and unrealized might be a lot higher.
And also since the ETF shop is going good, I have increased the capital by 1 lakh. Now the shop is running with Rs 2.5 lakh capital. Now coming back to the enhancement which I have done is to trail the profit. Say for example, a ETF has given me a 6% profit but it can go up from here. So I will not sell it today if the ETF is going up today. Whenever a ETF which is 6% up and shows sign of going down, then I will sell it. Because if it's going down today that means it can go down further. As you can see in the below image all my ETF has gone up today and only one is going down so I will sell that today. Similarly if out of these if some are going down tomorrow then I will sell those and which is going up will remain invested in it.
In this way I will ride the upward movement. This is nothing but riding the profit and when the sign looks like it is getting reversed then I will sell these ETFs because anyway I have achived the profit of 6%. So now with the increased investment as well as this new enhancement let's see how my shop performs from here on.
