Sunday, January 4, 2015

Correction in Reverse Trading Chpter of My Book

Respected readers,

 I find that in reverse trading chapter of my book I have a calculation mistake in my price target, so in next edition of my book this mistake will be edited as price target of 444 instead of 184 .
 After this correction read my book chapter 10 as 
1. First buying of Punj Lloyd 10 share @560 total investment 5600 
2. Reverse sell @ 256 total loss 3040 but get 2560 rupees back. 
3. Again buy 10 share @ 56 total investment 560 so I get 2000 rupee case back in this trading it will minimize my earlier purchasing cost from 5600 to 5600-2000=3600 only. 
4. Now my holding cost is 5600-2000=3600 
5. My price target is 444 so if I get it then it will give me 444*10=4440 so I get 4440-3600=840 rupee as my 15 % profit. 
Including the both trading we  got INR 6440 back( 2560+4440) from the initial amount we started 5600 and profit is 840 which is 15 % of 5600 Ok I am still hold these 10 share because Punj lloyed still traded below my target price  444 .
So in my next edition chapter 10 will be edited 
Thanks and regards. 
Mahesh Kaushik

6 comments:

  1. Thanks Mahesh Sir.

    I read this chapter more times and i was bit cofusing in that. Now i got clear thanks for your feed back to get it clear.

    Any way can i get idea if all fundamental is qualified but stock is trading in CMP less than base price 20% that is in the range of 20%-25%. Should be consider it for buying.

    ReplyDelete
  2. My registration number is 13145.

    Please suggest for buying share, we should consider 'Book Value'. It should be less than CMP or not.

    There is no any chapter in book about book value except for calculation in fundamental TP.

    Please suggest is it necessary to see individual book value of share except TP calculation.

    ReplyDelete
    Replies
    1. Respected Sir
      Your detail reply is published at this link
      http://sharegenius.maheshkaushik.com/2015/05/stocks-that-trade-at-discount-on-their.html
      Regards
      Mahesh Kaushik

      Delete
  3. Hi sir , OK we sold @ 256 but how much it will take to go down to 56, where we have to buy again, plz lighten

    ReplyDelete
    Replies
    1. When year high/low is cross above 2 then sell and when year high/low ratio is stable below 2 then buy again, please read my book or search reverse trading system on youtube for more details

      Delete

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