Respected Readers,
Read this premium article carefully because every point of this article will give you a new insight about stock market investing.
In Chapter 2 of my book The winning theory in stock market, I told that" if you invest initially $100 ( INR 6600) and add $10 (INR 660) every month and book 15% profits in my style, then your initial investment of $100(INR6600) will grow $71803722 (INR 4739045652) in 20 Years".
Some of my book readers do not believe in this chapter 2 theory so for proving this theory from 21 April 2016 I start giving Short term positional calls with 20%+ target and 10% stop loss.
Now I tell you how to use these short-term trading calls. For more interesting and easy understanding, I write this performance report in my Chandu style.
New readers, please visit my Chandu story here: -
How Chandu Follow my Fundamentals Tips.
If you read all parts of Chandu story from above link, then you may understand that Chinki is Chandu best friend and after seeing Chandu progress in the stock market she also plans to invest in stock market, but Chinki does not complete his study yet.
Chandu gifts my book to Chinki, and when Chinki read my book the winning theory in stock market, then she was very impressed with chapter 2 of the book. She was very excited after reading this chapter and unable to sleep the whole night.
Next day she discusses this chapter with chandu that how it possible that she invest only INR 6600 and add INR 660 every month then she earn INR 4739045652 in 20 years. Chandu says" Chinki you are so lucky because from today ( on 21 April 2016 ) Mahesh Kaushik update on his sharegenius blog that he start giving short term positional calls for 3 days to 3 months so you may follow him from today and check chapter 2 practically.
Chandu provides the link of this article to Chinki- http://sharegenius.maheshkaushik.com/2016/04/my-research-rules-or-research-terms-for.html
After reading above, link chinki was very happy, while she enjoys reading of above blog posts Chandu ordered two ice cream cone.
Chinki opens her ice cream cone and starts eating.
After 2 minutes of silence, Chinki ask " But Chandu one thing I cannot understand clearly that you and Mahesh Kaushik both say do not book profit before one year then why I book profit before one year?"
Chandu laugh and say " Chinki Mahesh Kaushik and me both are in 20% income tax range so If we sell our stock below 1 year then 20% income tax is applicable on our profits, we already pay huge income tax on our salary income, so we want tax free income from stock market, so this is the reason that we cannot book profit below 1 year of holding.
Chandu takes a bite of his ice cream cone and continues"But you are a student and if you want to earn in short term selling then no problem to pay 15% flat short term capital gain tax on profits.Mahesh Kaushik wife also books profits in the short term and liable to pay 15% short term capital gains".
"Ok, I Got it," Chinki say.
After this conversion, Chinki decided to invest his saving of INR 6600 as per my sharegenius blog recommendations, and she also decided to save/add INR 660 per month in his trading account.
So Now we see what happen after 21 April 2016.
On April 28, 2016: - I published my first short-term recommendation, read it here: - Punjab and Sindh Bank @ 37.90
Chinki divided his INR 6600 in 4 lots of INR 1500 each (1500*4=6000 remain 600 will use to pay brokerage and maintain saving account balance).
She invested his 1 part INR 1500 in PSB at 37.40 and bought 41 shares of PSB
Total investment:-
41*37.40=1533.40+40 brokerage=1573.40
Now Chinki remains cash was:-6600-1573.40=5026.60
Chinki target price =44.88 which are 20% over from buying price 37.40.
( In my book I told 15% profit as standard profit but if you book your profit in short term means 3 days to 12 months then you need to pay 15% short term capital gains on your profit So If you book 20% profit then you get near 15-16% return after brokerage, short term capital gain tax, and interest depreciation.)
Interest depreciation mean if you do not trade in the stock market and put your money in saving account then you get near 4% interest without doing anything so when we buy a stock then we do not get this 4% interest I called this interest as interest depreciation during our holding period.
On 1 May 2016:-
Chinki added his savings INR 660 so now Chinki hold 41 shares of PSB and has cash of 5026.60+660=5686.60
On 4 May 2016: - I published my 2nd short term recommendation, read it here: -
BGR Energy Systems @117.60
Chinki invests his 2nd part INR 1500 in BGR Energy at 117.60 and buys 13 shares of BGR Energy.
Total investment
13*117.60=1528.80+40 brokerage=1568.80
So now chinki remain cash is:-5686.60-1568.80=4117.80 Chinki target price =141.12 which are 20% over from buying price 117.60
and as chapter 1 of my book in this story, I do not use stop loss because shopkeeper never uses the stop loss.
On 28 May 2016: - I published my 3rd short term recommendation, read it here: - Balasore Alloys Ltd @19 Chinki invest his 3rd part INR 1500 in Ballasore Alloys at 19 and buy 79 shares of BAL of 30 May 2016 because on 28 May 2016 market was closed ( Saturday).
Total investment 19*79=1501+40 brokerage=1541
target 22.80 (20% above from 19)
So now chinki remain cash was:4117.80-1541=2576.80
On 1 June 2016:-
Chinki adds his savings INR 660
Chinki holding:-
41 share of PSB
13 Share of BGR
79 Share of Balasore Alloys
Total cash of 2576.80+660=3236.80
On 13 June 2016:-
I publish my 4th recommendation Jain Irrigation DVR @ 42.80, Read it here: -Jain Irrigation DVR @ 42.80 So Chinki buy 36 shares @42.80
Target=51.36 (20% up from 42.80)
Total investment=36*42.80=1540.80+40 brokerage=1580.80
Remain Cash=3236.80-1580.80=1700
On 14 June 2016:-
PSB target is achieved @44.88.
Chinki sell his 41 shares @44.88 and get=1840.08-40 brokerage=1800.08,
So chinki total profit is 1800.08-1573.40=266.68, She pays 15% short term capital gain tax 40.00 on this profit booking so finally chinki get her first profit after brokerage and tax 266.68-40=226.68
( This first profit amount 226.68 is so small but do not forget power of compounding as you going through this story you wonder how profit amount is increasing day by day ).
Chinki final amount from PSB sell ( After Tax)=1800.08-40(Tax)=1760.68
Remain Cash in Hand=1700+1760.68=3460.68
On 1 July 2016: - Chinki adds his savings INR 660 so now chinki hold:-
13 Share of BGR
79 Share of Balasore Alloys
36 Shares of Jain Irrigation
and has cash of 3460.68+660=4120.68
On 3 July 2016:-
I publish my 5th recommendation SAIL @ 46.10, Read it here: -SAIL @ 46.10 So Chinki buy 33 shares @46.10
Target=55.32 (20% up from 46.10)
Total investment=33*46.10=1521.30+40 brokerage=1561.40
Remain Cash=4120.68-1561.40=2559.28
On 14 July 2016:-
Balasore Alloys target is achieved @22.80 Chinki sell his 79 shares @22.80 and get 79*22.80=1801.20-40brokerage=1761.20,
So chinki total profit is 1761.20-1541=220.20,
She pays 15% short term capital gain tax 33.03 on this profit booking so finally chinki get her second profit after brokerage and tax 220.20-33.03=187.17
Chinki final amount from BAL sell ( After Tax)=1761.20-33.03=1728.17
Remain Cash in Hand=2559.28+1728.17=4287.45
On 18 July 2016:-
I publish my 6th recommendation Time Technoplast @ 52.30, Read it here: -Time Technoplast @ 52.30
So Chinki buys 29 shares @52.30
Target=62.76 (20% up from 46.10)
Total investment=29*52.30=1516.17+40 brokerage=1556.70
Remain Cash=4287.45-1556.70=2730.75
On 29 July 2016:-
Time Technoplast target is achieved @62.76.
Chinki sell his 29 shares @62.76 and get=1820.04-40brokerage=1780.04,
So chinki total profit is 1780.04-1556.70=223.34, She pays 15% short term capital gain tax 33.50 on this profit booking.
Finally, chinki gets her third profit after brokerage and tax 223.34-33.50=189.84
Chinki final amount from TTL sell ( After Tax)=1780.04-33.50=1746.54
Remain Cash in Hand=2730.75+1746.54=4477.29
On 1 Aug 2016: - Chinki adds his savings INR 660 so now chinki hold:-
13 Share of BGR
36 Shares of Jain Irrigation
33 Shares of SAIL
and has cash of 4477.29+660=5137.29
On 21 Aug 2016:-
I publish my 7th recommendation Panama Petro@ 62, Read it here: -Panama Petro @ 62 But 21 Aug was a Sunday, so chinki buys this stock on 22 Aug 2016
On 22 Aug 2016:-
Panama petro open with a gap up opening and open @65.70 instead of recommended price 62.
Chinki buys it at closing price of 22 Aug which was 70.50 ( I knew honesty is the best policy so here I use buying price 70.65 instead of 62.00, and in future, I publish my recommendations during market hours only for prevent such kind of gap up opening)
Chinki buys 22 Shares
Target=84.78 (20% up from 70.65)
Total investment=22*70.65=1547.70+40 brokerage=1587.70
Remain Cash=5137.29-1587.70=3549.59
On the other hand:-
Jain Irrigation DVR target @51.36 also achieved on 22 Aug 2016.
Chinki sells his 36 shares @51.36 and get=1848.96-40 brokerage=1808.96.
So chinki total profit is 1808.96-1580.80=228.16, She pays 15% short term capital gain tax 34.22 on this profit booking.
Finally, chinki gets her fourth profit after brokerage and tax 228.16-34.22=193.94
Chinki final amount from JIDVR sells ( After Tax)=1808.96-34.22=1774.74
Remain Cash in Hand=3549.59+1774.74=5324.33
One Important Change: -Now Chinki booked her 4th profit initially she divide his money into 4 lots, so after 4th profit booking she decided to increase per share investment amount as per chapter 13 of my book "every time increase 7.5% of your initial investment amount for buying a new lot."
So 7.5% of 1500 is 112.50 she rounded off it in nearest hundred, so she increases INR100 per lot and new lot size is INR1600 per share.
So after every four profit booking chinki increase 7.5% his per share invest amount.
On 1 Sept 2016: - Chinki adds his savings INR 660 so now chinki hold:-
13 Share of BGR
33 Shares of SAIL
22 Shares of Panama Petro
and has cash of 5324.33+660=5984.33
On 20 Sept 2016: - Panama petro gives 0.50 per share dividend, so chinki get 22*0.50=11 as dividend so total cash in hand=5984.33+11.00=5995.33
On 29 Sept 2016:-
I publish my 8th recommendation Indsil Hydro Power@36.20, Read it here: -Indsil Hydro @ 36.20
Now Chinki invests INR 1600 in this share and buy
Chinki buys 45 Shares
Target=43.44 (20% up from 36.20)
Total investment=45*36.20=1629+40 brokerage=1669
Remain Cash=5995.33-1669=4326.33
On 1 OCT 2016: - Chinki adds his savings INR 660 so now chinki hold:-
13 Share of BGR
33 Shares of SAIL
22 Shares of Panama Petro
45 Shares of Indsil Hydro
and has cash of 4326.33+660=4986.33
Now we calculate Chinki net worth on 09.10.2016 (Today):-
BGR CMP 117.30*13=1524.90
SAIL CMP 49.95*33=1648.35
Panama Petro CMP 77.90*22=1713.80
Indsil Hydro CMP39.70*45=1786.50
Cash=4986.33
Total Net worth=11659.88
Please remember I choose 6600 initial amount for practical to prove Chapter 2 and 13 of my book If you have more free money then you can start it with any amount suppose you want to start it with INR 50,000 then I advise to add INR 5000 every month and initially start it with 4 lots of 11,000 each.
Now, This is your time:-
If you want to start your share market business in Chinki style, or in last three months you do not earn from the stock market like Chinki then, first of all, I recommended reading these 4 books to all of my followers.
Here are the links to 4 books which you must be read before start stock market investment:-
1.The Winning Theory in Stock Market
2. How Chandu Earned And Chinki Lost In The Stock Market
3.The Richest Man in Babylon: Discover the Universal of Financial Abundance
4.How to Avoid Loss and Earn Consistently in the Stock Market: An Easy-To-Understand and Practical Guide for Every Investor
After ordered above books tell your view in comments that what you think about this? Can it is possible to earn 4,73,90,45,652 from 6600 initial investment or my theory will fail in near future?
You enjoy this story or not? Will you like to start your stock market investment in Chinki style?
Please share your view in comments because they give me a lot of energy for my free work.
Next Part of This Story:-
Read this premium article carefully because every point of this article will give you a new insight about stock market investing.
In Chapter 2 of my book The winning theory in stock market, I told that" if you invest initially $100 ( INR 6600) and add $10 (INR 660) every month and book 15% profits in my style, then your initial investment of $100(INR6600) will grow $71803722 (INR 4739045652) in 20 Years".
Some of my book readers do not believe in this chapter 2 theory so for proving this theory from 21 April 2016 I start giving Short term positional calls with 20%+ target and 10% stop loss.
Now I tell you how to use these short-term trading calls. For more interesting and easy understanding, I write this performance report in my Chandu style.
New readers, please visit my Chandu story here: -
How Chandu Follow my Fundamentals Tips.
If you read all parts of Chandu story from above link, then you may understand that Chinki is Chandu best friend and after seeing Chandu progress in the stock market she also plans to invest in stock market, but Chinki does not complete his study yet.
Chandu gifts my book to Chinki, and when Chinki read my book the winning theory in stock market, then she was very impressed with chapter 2 of the book. She was very excited after reading this chapter and unable to sleep the whole night.
Next day she discusses this chapter with chandu that how it possible that she invest only INR 6600 and add INR 660 every month then she earn INR 4739045652 in 20 years. Chandu says" Chinki you are so lucky because from today ( on 21 April 2016 ) Mahesh Kaushik update on his sharegenius blog that he start giving short term positional calls for 3 days to 3 months so you may follow him from today and check chapter 2 practically.
Chandu provides the link of this article to Chinki- http://sharegenius.maheshkaushik.com/2016/04/my-research-rules-or-research-terms-for.html
After reading above, link chinki was very happy, while she enjoys reading of above blog posts Chandu ordered two ice cream cone.
Chinki opens her ice cream cone and starts eating.
After 2 minutes of silence, Chinki ask " But Chandu one thing I cannot understand clearly that you and Mahesh Kaushik both say do not book profit before one year then why I book profit before one year?"
Chandu laugh and say " Chinki Mahesh Kaushik and me both are in 20% income tax range so If we sell our stock below 1 year then 20% income tax is applicable on our profits, we already pay huge income tax on our salary income, so we want tax free income from stock market, so this is the reason that we cannot book profit below 1 year of holding.
Chandu takes a bite of his ice cream cone and continues"But you are a student and if you want to earn in short term selling then no problem to pay 15% flat short term capital gain tax on profits.Mahesh Kaushik wife also books profits in the short term and liable to pay 15% short term capital gains".
"Ok, I Got it," Chinki say.
After this conversion, Chinki decided to invest his saving of INR 6600 as per my sharegenius blog recommendations, and she also decided to save/add INR 660 per month in his trading account.
So Now we see what happen after 21 April 2016.
On April 28, 2016: - I published my first short-term recommendation, read it here: - Punjab and Sindh Bank @ 37.90
Chinki divided his INR 6600 in 4 lots of INR 1500 each (1500*4=6000 remain 600 will use to pay brokerage and maintain saving account balance).
She invested his 1 part INR 1500 in PSB at 37.40 and bought 41 shares of PSB
Total investment:-
41*37.40=1533.40+40 brokerage=1573.40
Now Chinki remains cash was:-6600-1573.40=5026.60
Chinki target price =44.88 which are 20% over from buying price 37.40.
( In my book I told 15% profit as standard profit but if you book your profit in short term means 3 days to 12 months then you need to pay 15% short term capital gains on your profit So If you book 20% profit then you get near 15-16% return after brokerage, short term capital gain tax, and interest depreciation.)
Interest depreciation mean if you do not trade in the stock market and put your money in saving account then you get near 4% interest without doing anything so when we buy a stock then we do not get this 4% interest I called this interest as interest depreciation during our holding period.
On 1 May 2016:-
Chinki added his savings INR 660 so now Chinki hold 41 shares of PSB and has cash of 5026.60+660=5686.60
On 4 May 2016: - I published my 2nd short term recommendation, read it here: -
BGR Energy Systems @117.60
Chinki invests his 2nd part INR 1500 in BGR Energy at 117.60 and buys 13 shares of BGR Energy.
Total investment
13*117.60=1528.80+40 brokerage=1568.80
So now chinki remain cash is:-5686.60-1568.80=4117.80 Chinki target price =141.12 which are 20% over from buying price 117.60
and as chapter 1 of my book in this story, I do not use stop loss because shopkeeper never uses the stop loss.
On 28 May 2016: - I published my 3rd short term recommendation, read it here: - Balasore Alloys Ltd @19 Chinki invest his 3rd part INR 1500 in Ballasore Alloys at 19 and buy 79 shares of BAL of 30 May 2016 because on 28 May 2016 market was closed ( Saturday).
Total investment 19*79=1501+40 brokerage=1541
target 22.80 (20% above from 19)
So now chinki remain cash was:4117.80-1541=2576.80
On 1 June 2016:-
Chinki adds his savings INR 660
Chinki holding:-
41 share of PSB
13 Share of BGR
79 Share of Balasore Alloys
Total cash of 2576.80+660=3236.80
On 13 June 2016:-
I publish my 4th recommendation Jain Irrigation DVR @ 42.80, Read it here: -Jain Irrigation DVR @ 42.80 So Chinki buy 36 shares @42.80
Target=51.36 (20% up from 42.80)
Total investment=36*42.80=1540.80+40 brokerage=1580.80
Remain Cash=3236.80-1580.80=1700
On 14 June 2016:-
PSB target is achieved @44.88.
Chinki sell his 41 shares @44.88 and get=1840.08-40 brokerage=1800.08,
So chinki total profit is 1800.08-1573.40=266.68, She pays 15% short term capital gain tax 40.00 on this profit booking so finally chinki get her first profit after brokerage and tax 266.68-40=226.68
( This first profit amount 226.68 is so small but do not forget power of compounding as you going through this story you wonder how profit amount is increasing day by day ).
Chinki final amount from PSB sell ( After Tax)=1800.08-40(Tax)=1760.68
Remain Cash in Hand=1700+1760.68=3460.68
On 1 July 2016: - Chinki adds his savings INR 660 so now chinki hold:-
13 Share of BGR
79 Share of Balasore Alloys
36 Shares of Jain Irrigation
and has cash of 3460.68+660=4120.68
On 3 July 2016:-
I publish my 5th recommendation SAIL @ 46.10, Read it here: -SAIL @ 46.10 So Chinki buy 33 shares @46.10
Target=55.32 (20% up from 46.10)
Total investment=33*46.10=1521.30+40 brokerage=1561.40
Remain Cash=4120.68-1561.40=2559.28
On 14 July 2016:-
Balasore Alloys target is achieved @22.80 Chinki sell his 79 shares @22.80 and get 79*22.80=1801.20-40brokerage=1761.20,
So chinki total profit is 1761.20-1541=220.20,
She pays 15% short term capital gain tax 33.03 on this profit booking so finally chinki get her second profit after brokerage and tax 220.20-33.03=187.17
Chinki final amount from BAL sell ( After Tax)=1761.20-33.03=1728.17
Remain Cash in Hand=2559.28+1728.17=4287.45
On 18 July 2016:-
I publish my 6th recommendation Time Technoplast @ 52.30, Read it here: -Time Technoplast @ 52.30
So Chinki buys 29 shares @52.30
Target=62.76 (20% up from 46.10)
Total investment=29*52.30=1516.17+40 brokerage=1556.70
Remain Cash=4287.45-1556.70=2730.75
On 29 July 2016:-
Time Technoplast target is achieved @62.76.
Chinki sell his 29 shares @62.76 and get=1820.04-40brokerage=1780.04,
So chinki total profit is 1780.04-1556.70=223.34, She pays 15% short term capital gain tax 33.50 on this profit booking.
Finally, chinki gets her third profit after brokerage and tax 223.34-33.50=189.84
Chinki final amount from TTL sell ( After Tax)=1780.04-33.50=1746.54
Remain Cash in Hand=2730.75+1746.54=4477.29
On 1 Aug 2016: - Chinki adds his savings INR 660 so now chinki hold:-
13 Share of BGR
36 Shares of Jain Irrigation
33 Shares of SAIL
and has cash of 4477.29+660=5137.29
On 21 Aug 2016:-
I publish my 7th recommendation Panama Petro@ 62, Read it here: -Panama Petro @ 62 But 21 Aug was a Sunday, so chinki buys this stock on 22 Aug 2016
On 22 Aug 2016:-
Panama petro open with a gap up opening and open @65.70 instead of recommended price 62.
Chinki buys it at closing price of 22 Aug which was 70.50 ( I knew honesty is the best policy so here I use buying price 70.65 instead of 62.00, and in future, I publish my recommendations during market hours only for prevent such kind of gap up opening)
Chinki buys 22 Shares
Target=84.78 (20% up from 70.65)
Total investment=22*70.65=1547.70+40 brokerage=1587.70
Remain Cash=5137.29-1587.70=3549.59
On the other hand:-
Jain Irrigation DVR target @51.36 also achieved on 22 Aug 2016.
Chinki sells his 36 shares @51.36 and get=1848.96-40 brokerage=1808.96.
So chinki total profit is 1808.96-1580.80=228.16, She pays 15% short term capital gain tax 34.22 on this profit booking.
Finally, chinki gets her fourth profit after brokerage and tax 228.16-34.22=193.94
Chinki final amount from JIDVR sells ( After Tax)=1808.96-34.22=1774.74
Remain Cash in Hand=3549.59+1774.74=5324.33
One Important Change: -Now Chinki booked her 4th profit initially she divide his money into 4 lots, so after 4th profit booking she decided to increase per share investment amount as per chapter 13 of my book "every time increase 7.5% of your initial investment amount for buying a new lot."
So 7.5% of 1500 is 112.50 she rounded off it in nearest hundred, so she increases INR100 per lot and new lot size is INR1600 per share.
So after every four profit booking chinki increase 7.5% his per share invest amount.
On 1 Sept 2016: - Chinki adds his savings INR 660 so now chinki hold:-
13 Share of BGR
33 Shares of SAIL
22 Shares of Panama Petro
and has cash of 5324.33+660=5984.33
On 20 Sept 2016: - Panama petro gives 0.50 per share dividend, so chinki get 22*0.50=11 as dividend so total cash in hand=5984.33+11.00=5995.33
On 29 Sept 2016:-
I publish my 8th recommendation Indsil Hydro Power@36.20, Read it here: -Indsil Hydro @ 36.20
Now Chinki invests INR 1600 in this share and buy
Chinki buys 45 Shares
Target=43.44 (20% up from 36.20)
Total investment=45*36.20=1629+40 brokerage=1669
Remain Cash=5995.33-1669=4326.33
On 1 OCT 2016: - Chinki adds his savings INR 660 so now chinki hold:-
13 Share of BGR
33 Shares of SAIL
22 Shares of Panama Petro
45 Shares of Indsil Hydro
and has cash of 4326.33+660=4986.33
Now we calculate Chinki net worth on 09.10.2016 (Today):-
BGR CMP 117.30*13=1524.90
SAIL CMP 49.95*33=1648.35
Panama Petro CMP 77.90*22=1713.80
Indsil Hydro CMP39.70*45=1786.50
Cash=4986.33
Total Net worth=11659.88
Please remember I choose 6600 initial amount for practical to prove Chapter 2 and 13 of my book If you have more free money then you can start it with any amount suppose you want to start it with INR 50,000 then I advise to add INR 5000 every month and initially start it with 4 lots of 11,000 each.
Now, This is your time:-
If you want to start your share market business in Chinki style, or in last three months you do not earn from the stock market like Chinki then, first of all, I recommended reading these 4 books to all of my followers.
Here are the links to 4 books which you must be read before start stock market investment:-
1.The Winning Theory in Stock Market
2. How Chandu Earned And Chinki Lost In The Stock Market
3.The Richest Man in Babylon: Discover the Universal of Financial Abundance
4.How to Avoid Loss and Earn Consistently in the Stock Market: An Easy-To-Understand and Practical Guide for Every Investor
After ordered above books tell your view in comments that what you think about this? Can it is possible to earn 4,73,90,45,652 from 6600 initial investment or my theory will fail in near future?
You enjoy this story or not? Will you like to start your stock market investment in Chinki style?
Please share your view in comments because they give me a lot of energy for my free work.
Next Part of This Story:-
Good morning sir. Bilkul achhe se smajhay hai aap e is book ko padhkar hi maine suru kiyabtha share me nivesh... aur profit v book kar raha hu. Aapk bataye formula se koi chale to kuchh salon me caroron kama sakta hai.Thank you so much sir ...bahut achha likhate hai.aap.
ReplyDeleteThank you sir with regards
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