Equity Investment through Geometric Progression: Beyond Value Investing

It has always been a constant search for the investor to find out the right strategies to invest in the stock market without any losses. Some analysts suggest the fundamental analysis for medium to long term investors while others suggest the technical analysis for short term to medium term investors. There is always a debate as to whether the stock movement can be predicted with accuracy. But one thing can be stated with conviction that the falling stock prices trend will discontinue after some time. Long term falling trends may still continue but there will always be a retracement in the short term. It has been seen in the past that the majority of the investors have burnt their fingers in the stock market investment during the falling market. One of the major reasons quoted was that the investor buys more in rising markets and sells more in the falling market. Analysts suggest a reverse strategy i.e. invest more in falling markets and sell more in the rising market. However, there is no clarity on the amount of money to be invested with proper strategies so that the investor can make profit with certainty. This paper tries to examine the concept of geometric progression and use it as one of the strategies in stock market investment to make guaranteed profit irrespective of stock market movement.