Best Stocks to Invest for the Next 5 Years

I am unaware of your motive behind asking for the best stocks for long term investment, say 5 years.

But let me tell you, it will enable you to obtain the advantages of purchasing stocks.

The moment you buy a stock it will benefit you in parameters such as compounding your investment, facing lower risks, obtaining higher returns, and enjoying the tax benefits. 

In the below mentioned paragraphs, you can view a list of stocks that you can make option buying (purchasing) and wait for at least 5 years to execute option put (selling)

The list of the 5 best stocks do belong to the stocks operating in the markets of the NSE/BSE (India). 

The prominent stocks you can purchase for a period of  five years are Asian Paints (Chemical Industry), HDFC (Banking), ITC (Hospitality Services) , Divis (Active Pharmaceutical Ingredient Segment), & Zydus (Pharmaceuticals). 

Best Stocks for Next 5 Years

1. Asian Paints (Chemical Industry)

Asian paints limited is the largest supplier of the domestic/commercial paints and it faced a loss of 500 bps in FY22 as an outcome of the material cost rise. 

Since December 22 onwards, the performance graph took an upside movement and it represented a double-digit volume growth. 

The company has forayed into the Automobile sector and the government of India has laid a higher capital expenditure on infrastructure. Further, the company is estimated to show continuous growth in FY24 also. 

2. HDFC (Banking)

HDFC maintains its credit cost lower that helps to generate high operating profits. 

The company shall make a huge profit that will create a high return on assets in FY24. 

With an increase in capital expenditure the bank’s corporate loan shall steer up.

The retail loan segment will experience a good growth with a considerable rise in two-wheeler loans, personal loans, and credit cards thus projecting a projectile in the bank loan growth. 

3. ITC (Hospitality Services) 

High inflations and the attack of Covid did not deter the operating profit growth in FY21 & FY22. 

To show the same or more growth performance in the coming 2 to 3 years the company has plans to invest 300 cr per annum. 

This pumping in of the INR 300 cr invites for the capacity expansion, back-end strengthening and further investing in the key business to keep up the brand. 

4. Divis (Active Pharmaceutical Ingredient Segment)

Divis holds a market share that includes 12 globally acclaimed pharmaceutical companies, and contributes a significant market share in the API industry. 

The company manufactures Generic API, CustomSynthesis of API, and Intermediates in India. 

Over the period, the company could operate with profits and project a consistent growth profile and maintain stable margins. 

The company plans to expand to a size of US$20 million between FY 23-25. 

5. Zydus (Pharmaceuticals)

Zydus runs their operations in the USA, India, Latin America, South America, and Europe. 

The company plans for Generic pipeline which is claiming to be the largest. 

7 percent of INR 3,435 is spent on R & D, and the highest spending to manufacture Generic pipeline is 9 million in FY23 is an investment in R&D, a strong investment. 

Stocks that may give double returns in 2024

Artificial Intelligence, AI, tools began to employ technical analytics to predict which stocks will double in 2024. 

The entire data shall revolve on the stocks trading in the American Stock Trade Market NASDAQ 

The stocks that could double up are META platforms, Tesla, SLDP, Alibaba, & Fiverr International by 2024. 

AI Analytics Predict Stocks to Double up by 2024:

The following are some of the booming stocks that may give double returns in the year 2024.

META Platforms:

Meta Platforms ( META) is a social media giant that was established in the Internet circles and originally known to be Facebook. 

Company Performance in the Stock Trade: 

To make it to double the share price, according to Wall Street Analysts, the META shares must move beyond $570. The current share price is $310.87 as on February 03 2024. To reach it, the share price will have to move $100 above the assigned target price.  

META has gained revenue much above Wall Street evaluations. The current sales happens to be $34.2 billion and it has gone higher by $900 billion more than the Wall Street consensus. 

To cut down the loss, the company has slashed jobs to compensate for the loss incurring in the Reality labs. 

Tesla (TSLA): 

Elon Musk, the innovator and inventor of electric vehicles branded as Tesla ( TSLA) is in the list of companies where the company stocks are most likely to double by 2024. 

Company Performance in the Stock Trade: 

Wall Street analysts say that to double the stock price, it will have to touch $410 and it is just above the highest target price. The share price is $218.51 as on November 03, 2023.

The  share prices are resuming from where it kicked off in November of 2021. 

The electric vehicle deliveries have picked up and have touched 50 % of the unit volumes. 

Another aspect that came to the company’s advantage is the United Auto Worker strike that gave Tesla to breath.  

Solid Power ( SLDP):

(Solid Power (SLDP)) is just another company that is the developer of solid state batteries for electric vehicles.  

Company Performance in the Stock Trade: 

SLDP is trading at $1.43 as on November 3, 2023 and it has come up with technology that can reduce the charging times and improvise EV ranges, run up to 600 miles range. 

The company partners FORD, and BM and it is on the way to commercialization. 

And, Wall Street experts say that the share performance is 100% flipside and there is a high probability of doubling the stock price. 

Alibaba (BABA) 

America is housed by a Chinese e-commerce and technology company Known to be Alibaba( BABA). 

Company Performance in the Stock Trade:

As of November 3, 2023, the current Alibaba share price is at 83.41 USD and it is one of the biggest ecommerce and cloud technology companies in China. The company acts as a proxy for the Chinese economy. 

Interestingly, $29 billion dollars have been pumped into the Alibaba company in  2022 and the current strong cash position can double the stock price. 

Fiverr International: 

An online content platform, gained global acquaintance by providing freelance services, Fiverr International (FVRR), in addition to, the company has funded into AI to generate more precise and accurate freelance services. 

Company Performance in the Stock Trade:

It is quite uncertain why AI has selected Fiverr International for doubling its share price by 2024 and the share price is $ 21.33 as of November 03, 2023. And, here is something the company has a say. 

The company is able to produce good turnaround through its operations. 

The operating expenses have reduced considerably, it came down to $4.01 million in Q2 ‘23 when compared to $42.65 million in Q2 ‘22. And, in Q2 21’ the operating expenses were $ 41.86 million. 

Successful Intraday Trading Strategies

Here are some of the successful intraday trading strategies that I follow personally.

Trend Following:

Identify strong trends using technical indicators like moving averages or trendlines.

Enter trades in the direction of the trend, buying during uptrends and selling during downtrends.

Use pullbacks or retracements within the trend as entry points, with proper risk management.

Breakout Trading:

Monitor stocks that are consolidating within a range, with clear support and resistance levels.

Enter trades when the price breaks out of the range and keep the stop loss below the breakout price.

Do not forget to set stop-loss orders below support (for long trades) or above resistance (for short trades) to manage risk.

Scalping:

Capitalize on small price movements by entering and exiting trades quickly, often within seconds or minutes.

Focus on highly liquid stocks with tight bid-ask spreads to minimize slippage.

Use technical indicators like stochastic oscillators or short-term moving averages for entry and exit signals.

Here are some of the best YouTube Channels to learn technical analysis for free.

Range Trading:

This strategy is a reversal of the breakout trading strategy.

Identify stocks that are trading within a well-defined range between support and resistance levels.

Buy near support and sell near resistance, aiming to profit from price reversals within the range.

Use oscillators like the RSI or stochastic oscillator to confirm overbought or oversold conditions within the range.

News-Based Trading:

Execute trades based on significant news events or earnings releases that can cause sharp price movements.

Gap Trading:

Look for stocks that have experienced a significant price gap between the previous day’s close and the current day’s open.

There is a huge chance of price reversal when the market opens with huge gap ups or gap downs. Utilize the opportunity in the first 15 minutes time.

Pivot Point Trading:

Calculate daily pivot points based on the previous day’s high, low, and close prices.

Use pivot points as key support and resistance levels, entering trades when the price approaches these levels and shows signs of reversal.

Combine pivot points with other technical indicators for confirmation signals and act accordingly.

Tips to Earn Regular Income from Intraday Trading

Pretty interesting to find such a query ‘ how to make money in Intraday trading’ and the answer is simple. Follow my simple tips that shall boost your morale and later you too can earn regularly in Day Trading.

Check your Trading Capital:

I had financial limitations and so decided to indulge in intraday trading to benefit from it, but what is your trading capital?

Thumb Rule: You must opt for buyers markets (day trading) when you have small trading capital which is huge trading capital in sellers trading otherwise.

A decent Profitability, and good risk management can give instant return on investment in day trading only after you strategize a clear trade plan.

In stock trades, you must realize that depending upon the type of trades you prefer and the trade strategies you adopt you shall reap profitability.

For instance, in the stock markets, you can think about how to make money in day trading, scalp trading, swing trading, options, and futures. In every trading, you need to adopt specific trade tactics to skip risks and make good money.

Rules of the Game

In day trading, you must understand the rules of the game. The trading session in day trading lasts for a day, which means, you must buy and sell the stock on the same day’s trading session. You will make money or lose money in a day.

Follow experts’ advice that says, buy and sell stocks multiple times in a day trading. It will help you to make money in small chunks thus creating a decent amount of money.

You can trade and earn at least 2 to 3 percent in a day and by the end of the week, you can fix a profit target of 5 percent.

Check-list Before You Enter Day Trading:

Review the previous day’s closing and current day’s opening stock positions.

Check for the 1-minute to 4-minute time frame to confirm it to be buyers’ day or sellers’ day. If you observe it to be sellers day then avoid entering the stock markets.

From the 15-minute time frame charts, you can find the right timing to buy and sell the stocks while to understand the movement and the direction of the stocks you must analyze the day’s time frames.

The intraday trading session begins at 09:30 am and ends by 03:30 pm and the usual buy/sell operations reach their highest activity by 01:30 pm.

Before you begin to trade in day trading you must have a clear picture and clarity about the market directions and you must buy/sell stocks when you find your chosen stock in the upward trend. It means you must buy when the stock price is low and sell as the stock price rises to your expected levels.

In the trading session scenarios, a high stock volatility can cause a loss when the stock prices decline sharply and fall below the bought price of a stock. And, if you fall to apply a stop-loss to about 10 percent then you can incur heavy losses due to the stock decline.

Day Trading Limitations:

You may not be able to do trading when a particular stock hits the higher circuit or lower circuit because the trading on that stock gets stopped for a time.

And, the trading resumes after the upper circuit (selling)/lower circuit (buying) patterns calm down.

Upper circuit/ lower circuit situations arise when a company comes up with good/bad news in the markets. In such circumstances, you must stop your buying/selling activities.