In the interest of the investor fraternity am listing a few guidelines which needs to be followed to get the best results:
1. Undertake position in all listed recommendations for the day as loss in one will offset profit in other.
2. Divide the capital equally into the number of recommendations to be invested in.(if 4 recos selected, divide the capital into 4 parts).
3. If stock opens 5-6% up, its not a negative and do not feel that you have missed the bus as market has confirmed the analyst's opinion.
4. For short term players, they should cut their losers out of the portfolio by end of the day and if feasible should carry the winners, as a winning trade is more likely to get more profit if held overnight. However tendency is to get out of profit making positions and keep on holding loss making positions.
5. Remember context of the market while taking the calls. In a wildly bullish or bearish mkt, most calls work. In a choppy mkt, the probablility of calls working is lower.
8. Do not add to losing positions, however winning positions may be added to but in a lower proportion.
9. Do remember to book profit at the given levels i.e book 25% at first target and balance at second target.
Guidelines for Traders Following Recommendations
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