Nikhil Kumar
I've made 100s of financial sins and when I decided to get my life together, I started learning about Personal Finance. I've read 100s of Books and have watched hours of videos. Here, I will share my mistakes and learnings with you.

Fixed Fixed Double Strategy in Stock Market Explained

You have probably heard about Fixed Fixed Double on YouTube by Mr. Manoj Kumar Jain who dances whenever he says these words in is show MKJ talks for investment in Hindi. Or probably your friend told you about it.

And we have seen their fruitful success in the Stock Market with the help of this FFD strategy.

But there are many English viewers who can’t benefit from it because he talks in Hindi. So this article is to help those viewers. I have also created a calculator (excel sheet), to help you understand this concept better.

My story in the Stock Market

I used to be a loser when Stock Marketing was concerned. Or, I was too fearful that I used to exit only at the profit of Rs. 100 or 200.

I’m sure that many of us go through the same phase. Now I’m writing this article during the COVID-19 Outbreak. I learned about the stock market again, invested 50,000 (Thankfully I had my savings)Rupees during the market crash in March 2020, and right now I have already gained a profit of Rs. 35,000.

I was able to achieve this due to the Fixed Fixed Double strategy (Also known as MKJ FFD).

Since I had nothing much to do during the lockdown due to Coronavirus, I thought of trying my luck again at the stock market.

I knew the market was crashing, and this could be Once in a Decade Opportunity to Invest. 

Before jumping into it, I educated myself, I watched 100s of videos, and the most interesting strategy I learned was Fixed Fixed Double from Mr. Manoj Kumar Jain.

Note: Before we start, if you don’t have a Demat Account, you can create one online with Upstox (Click here). I personally like Upstox due to its stability and easy to use interface. 

What is Fixed Fixed Double?

We often hear that we have to balance out between Greed and Fear in the Stock Market. But, no one tells us how to balance.

I understood that it all depends on the TARGET.

There have been many instances where I could have made Rs. 4500 but I exited only at Rs. 1500 profit. Because that was my target.

Keeping a profit target teaches us to be emotionally disciplined. However, we should also keep a target of losses.

So the basic idea behind the FFD strategy is to keep the money available and average out the price when the Current Market Price of the share goes down.

It works like a charm in a volatile market and Bluechip stocks.

How Fixed Fixed Double Strategy Works?

Suppose you have 1,00,000 Rupees to invest and you buy some shares at 10% of your budget and set a target percent drop to reinvest or average out the price – Generally it is 10%. #FIXED

If the current market price (CMP) of the share drops by 10%, you need to buy the same shares of the same amount you invested earlier. #FIXED

It the CMP further drops by 10% then double your investment amount and buy again. #DOUBLE

Then follow the same cycle till you have invested all the money you had decided.

Here, you can change a 10% percent drop up to your risk abilities. Or you can play around with this fixed fixed double calculator.

Example

Let’s take an example,

Investment Amount Available: Rs. 1,00,000

CMP of the Share: Rs. 1000

Target Drop Percentage: 10%

So our chart will look something like this:

fixed fixed double calulator

From the above example, you will exhaust most of the budget until the current market price reaches 65.61.

You will have 1342 shares at an average price of 74.51.

So once the amount reaches back to 80, your profit will be Rs. 7,362. In the long term, if the CMP reaches back to 100, the profit will be Rs. 34203.

By this, you can understand that the basic idea is to keep the average price closer to the current market price.

Once the share bounces back and touches 100 again in a year or two, your profit would be approximately 34,000 Rupees. Any smart investor knows that the graph of the market is up in the long run. 

Conclusion

It’s a really great strategy but I believe investors have been doing it for a long time. Just that it didn’t have a name.

If you are choosing a Fixed Fixed Double strategy to invest, you must be really careful about choosing the company. Hence I apply this only in blue-chip stocks Reliance, Hindustan Uniliver, SBI, etc. as they are safe and trustworthy.

Also, it’s a really long term game. It either works in the volatile market or the long term ones.

If you are a beginner and want to enter the stock market for the long term, you can use this strategy and open up an account with Upstox here.

 

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Nikhil Kumar

A personal finance enthusiast. I've made 100s of financial sins and when I decided to get my life together, I started learning about Personal Finance. I've read 100s of Books and have watched hours of videos. Here, I will share my mistakes and learnings with you.

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