Post Dated Cheque in your name...

I know someone in Shimla whom we call the grand old stock trader of Shimla.

He is around 70, is a chain smoker and a stock market addict. Wears spectacles, puts his eyes at 3inches distance from the terminal monitor, is always very relaxed and happy, speaks very less and minds his own business.....

The brokerage house keeps one exclusive terminal and attendant for him.

He entered share market with Rs.10000/- around 15 years ago and today has over a 1.5 crore out of that investment!

The other day i was sitting with him. He was in a very good mood.

I asked him for a sure shot investment method from him, his secret.

What he told me was very simple and very interesting. I felt, i must share with you what he told me.

He said "I pick any good company which is substantially down from its 52 week high and write myself a 'Post Dated Cheque'.

He then explained it -

"See, Suzlon made a 52-week high of 136 on 4 June09. I bought 10000 shares at Rs.64 on 10th Nov'09 for Rs.6,40,000/-.

I have written myself a post dated cheque of Rs.13,60,000/- (10000 shares multiplied by the 52 week high rate of 136).

I have not put the exact date but it is a PDC crossed cheque for me.

I put all these cheques in my study drawer. Whenever i have any anxiety, I just go to the drawer, open it and have a look at that real cheque.

I know Suzlon will go back to 136 sooner or later.

Exact date i don't know. But it won't take ages, that much i am sure. I will sell it when it reaches 136."

I was awe struck with the simple method backed by that PDC trick!

This way, this gentleman has multiplied his wealth 1500 times in less than 15 years!

Not surprising considering that he would make 112% on his investment in Suzlon in less than a year (most probably).

This gentleman knows no graph reading, knows no computers, knows nothing about RSI, Moving Averages, Stochastics,......nothing.

He doesn't do day trading, he doesn't trade futures, he knows nothing about options. He doesn't listen to experts neither does he watch TV except for gossiping!

This man pays no income tax (investment returns more than 365 days qualify for long term capital gains tax exemption, i think).

He is happy when the market is going up and happier when they are going down.