Minimum Risk

Mr. A was having Rs.2 Lacs and wanted to start Investment in Stocks. He wisely diversified his Investment in 20 Stocks i.e. Rs.10000 in each Stock.

Book Profits

Mr. A sold those Stocks time to time where he got Satisfactory Returns in Short Period of Time. He held Quality Stocks where returns were yet to come.

Compounding

Mr. A re-invested the amount derived from sale of stocks, in New Quality Stocks as he was much aware about common saying that Power of Compounding is the 8^th Wonder of the World.

Underperforming

Mr. A sold those Stocks which were not performing well in 1-2 months as per his expectation and invested that amount too in New Quality Stocks.

Conclusion

Mr. A felt very Happy & Satisfied for his decision to not trade in Futures, Options and Intraday as he had already burnt his fingers there.

Now Mr. A found himself able to grow his Investment with Diversification.