I am happy to see your comments, faith and love with last 6 parts of this story.
I am also happy to see that this story teach you stock market investment basics in a simple way.
Now we continue with Chandu journey new readers please start it from part 1, here is the link of part 1:-
Chinki was very excited when she heard Chandu story and she also plan to follow this investment style.
Now I think after read last 6 part of this story my readers are properly understood that " How to invest in my style?", So now I publish final results of Chandu profit booking story as I publish in my penny share blog. ( see past profit booking in penny share here:- Past Profit booking in Penny Share
So here is the Chandu profit booking and holding details start from BLB Ltd.:-
1. BLB Ltd:- Chandu buy 1672 Share on 18.03.2013 Buying price 2.99 ( Investment with brokerage 5050) and get INR 167 as Dividend in this stock.
On 18.03.2014 Chandu investment complete his 1 year of investing and he check market price of BLB Ltd on 18.03.2014.
Chandu found that market price was 2.50 So now value of his BLB holding was 1672*2.50=4180 So he was in notional loss of INR 870 but he could not worried because he understand that if he hold this stock then he get dividends income and his maximum loss is limited to INR 5000 only.
and Chandu do not average out this stock because he is a strict follower of me and in my theory average out of any stock is not allowed see this youtube video for more understanding of this theory:-
So what is chandu target ?
Chandu want minimum 15% profit so it means his target price is 2.99+0.45 (15% of 2.99)=3.44
So chandu wait this price on closing basis.
Now I advice to download this excel sheet of BLB price history here:-
at 26.05.2014 Chandu get this price and closing price of 26.05.2014 was 3.57 as you seen in above excel sheet.
Now Chandu have 2 option:-
1. Book profit @3.57
2. Wait more profit but secure his profit at 3.57
So chandu decided to track every day closing price after this 3.57 and if closing price fall below 3.57 then he sell his stocks on next trading day.
If closing price not fall below 3.57 then he enjoy the ride but if stock price start to falling and closed near 10 % of any recent high then he book profit on next trading day.
Please refer above price sheet for more deep understanding
You find that closing price on 12.06.2014 was 5.65 and closing price of 16.06.2014 was 5.11 so on closing price basis stock is falling near 10 % from recent high of 5.65 , Chandu book his profit on next trading day ( on 18.06.2014) @ 4.86
So chandu profit is 4.86-2.99=62.54% in this trade.
Chandu net profit is:-
Buying date:-18.03.13 @2.99 brokerage 50 total 1672 shares total investment 5050
Selling date:- 18.06.14 @ 4.86 brokerage 50 total amount get from selling 4.86*1672-50= 8076
Net profit in this trade:-8076-5050=3026
Net dividend income:- 167
Total Profit with dividend=3193
Overall gain % on 5050 investment=63.22%
I made this report with full honesty because if you see above excel sheet then you find that BLB touch all time high @10.63 on 29.09.2014
So if I do not use honesty then I tell chandu sell his stocks @ 10.63 and get 10.63*1672=17773 from his 5050 investment total 255.51% profit.
but instead of this self prayer I want to teach my followers with reality and honesty.
Please remember "In stock market it is near about impossible to buy on lowest price and sell on highest price".
So chandu is very happy with his first profit booking of INR 3026, Chandu go to nearest ATM and withdraw INR 2000 then he invite Chinki to take a dinner in 5 star restaurant with his first share market income...
Great article. Really helpful for all the small investors.ReplyDelete
Thank you anandan jiDelete
Clearcut and effective strategy.ReplyDelete
Thank you anil jiDelete
Thank you very much for these articles which are really helpful for beginners like meReplyDelete
Thank you Maheshji, this is very helpful for beginners like meReplyDelete
Your welcome rajeshwar noojibali jiDelete
Thank you bhushan varma jiDelete
sir give us some idea to calculate book valueReplyDelete
Anil ji, please download excel data sheet from this blog where I give book value of 3700+ Companies,For calculate book value you need company full balance sheet.Delete
Thank you sheetal jiDelete