The Real Story of How I Made Rapid Profits By Getting into this Market Three Months Back

Jun 22, 2020

Rahul Shah, Editor, Profit Hunter

It wasn't an auspicious start by any stretch of the imagination. Only a few months into the launch of my new stock recommendation service and I was staring at huge losses.

In fact at the end of the first year, I had to close three positions at a losses of 91%, 82%, and 74%.

The other stocks weren't doing well either with one down 57%. It looked as if I had dug myself into a deep hole.

This is my penny stock service, Exponential Profits I am talking about.

In case you're wondering if I had the misfortune of shutting down this service for good, you are certainly right. Had I been in your place, I would have assumed the same thing. After all, who would want to be a part of such a disastrous outing anymore?

You are wrong though.

You see, I deliberately left out a crucial piece of information.

The stocks suffered huge losses but my subscribers were only 25% invested when this disaster struck.

So if they had set aside Rs 100 at the start of the service, I recommended investing only Rs 25 in all my stock recommendations.

That's why the overall corpus was down only 10% despite the losses.

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The math is simple.

Although my recommendations fell along with the market, the overall loss was only 10% because my subscribers were only 25% invested in stocks.

This 25% allocation was completely intentional. I expected a strong correction to take place in the next one year or two. I didn't want to expose my subscribers to a lot of risk.

You see, in a strong bear market, it is penny stocks that end up being the biggest wealth destroyers of all the categories of stocks. To protect against this loss, I restricted the allocation to just 25%.

The Coronavirus led correction struck sooner than I anticipated. It was much deeper also.

However, I was fully prepared. When the stock market tanked almost 40% from the top, I decided it was time to finally start moving the 75% set aside in cash into stocks.

And this is precisely what I did.

Between March and June 2020, I made a total of 7 brand new recommendations. All of them are trading in the positive as I write this, with gains like 48%, 29%, and 25% in a span of just two to three months.

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It was extremely difficult for me to go against the crowd and sit on 75% cash when stock markets were creating new highs.

However, I knew based on historical data that markets were expensive and there was a strong chance they would fall.

It was equally difficult to start recommending stocks when the market was down 40% from the top and everything around was falling like nine pins.

However, I knew based on historical data, the markets have now turned cheap and there was a strong chance they would go up.

More than the individual stock picks, it is what you do at these crucial turning points in the market that has a greater impact on your long term returns.

I've developed a system which tells me exactly what to do in these moments. It has worked well so far and I think it will continue to do so.

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My system was inspired by investing stalwarts like Benjamin Graham and Howard Marks. It has clear timeless rules to ensure you enter and exit stocks at the right time.

If you want to know more about these rules and my entire system, you are welcome to join me online at the Rapid Profits Summit on the 29th June at 5 pm.

At the summit, I'll also reveal 10 stocks my system has identified. They are all potential multi-baggers in the making.

Click here to know more.

Good Investing,

Rahul Shah
Rahul Shah
Editor, Profit Hunter
Equitymaster Agora Research Private Limited (Research Analyst)

PS: Join me online at the Rapid Profits Summit on Monday, 29th June. I'll tell you about the top 10 stocks to buy in this market. Click here to register for free...

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