Stock Investor Plan- Follow Your Broker Reports (FYBR)

Name: ________________________________

E-Mail_ID: ________________________________

Mobile Number: ________________________________

Capital Allotted for Stocks Investing : Rupees____________________________

Action Plan
I will follow a two stepped process:
1. Fundamental Analysis - For selecting/short-listing stocks to invest in
2. OTA Market Timing - to get in and out of the stocks at the right time

FOLLOW YOUR BROKER REPORTS (FYBR)

I. Selection and Screening of Stocks based on Fundamental Analysis

Be updated on economic developments
1. My preferred choice of keeping myself updated on economic developments (Please tick):
a) Sharekhan Market Outlook Report
b) Other brokerage reports on Economic analysis
c) Both of the above
d) ______________ (other)

Shortlist Sectors
2. My preferred choice of sector analysis (Please tick):
a) Sharekhan Market Outlook Report & Investor Eye report
b) Other brokerage reports
c) Both of the above
d) _____________ (other)
 Stock Investor Plan- Follow Your Broker Reports (FYBR)

Shortlist Companies
3. My preferred choice of scanning for stock ideas (Please tick):
a) Sharekhan recommended fundamental calls
b) Other Brokerage Reports with respect to stock recommendations
c) Both of the above
d) ______________ (other)

II. OTA Market Timing

1. I will create a Market Watch screener in Trade Tiger for the stocks selected on fundamental
basis.
2. I will use the 5 period Simple Moving Average on monthly chart to identify the trend (using
clock method) of the selected stocks
3. Depending on the trend I will plot the demand zones (as under) to identify price levels for
my entry:
Entries
Trend Zoning Time Frame Zoning Time Frame
Aggressive investor Conservative Investor
Coinciding with monthly
Uptrend Weekly demand zone
Coinciding with quarterly
Sideways Monthly demand zone
Coinciding with Yearly
Downtrend Quarterly demand zone

4. If the price is at/inside the zone I buy the stock

5. If price is not at/ inside the zone then I will place alerts in Trade Tiger to notify me in
advance regarding a potential entry for stock investing

6. I will use the following rules to decide on my exit strategy

EXITS
Scenarios Situation Rules
Scenario1 Initial Stop loss DATR 10%
Scenario2 Trailing Stop Loss Based on scenarios given below
Scenario3 Fundamental Sell When Sharekhan recommends a Sell

7. Once the entry is taken I will immediately put an Initial Stop Loss order, using the following:
 Stock Investor Plan- Follow Your Broker Reports (FYBR)

Scenario 1: Initial Stop Loss

Trend Stop Loss Coinciding zone
Below Weekly /Second Weekly Weekly & Monthly - Below
Uptrend DZ Monthly
Monthly & Quarterly - Below
Sideways Below Monthly DZ Monthly
Quarterly & Yearly - Below
Downtrend Below Quarterly DZ Quarterly

The Stop Loss Order is placed beyond the Distal Line by some wiggle room calculated as
follows:

Investments : Add 10% of the Daily ATR (round up)

Put initial stop loss using MyGTD TSL order in Trade Tiger

8. Once the new monthly demand zone is created the trailing stop loss will be modified and
placed below that zone.

The Trailing Stop Loss Order is placed beyond the Distal Line by some wiggle room
calculated as follows:

Investments : Add 10% of the Daily ATR (round up)

Put Trailing stop loss using MyGTD TSL order in Trade Tiger

Scenario 2: Trailing Stop Loss

Scenarios Situation TSL level Coinciding zone

Weekly or Second If there is a monthly

If price is retracing weekly coinciding zone then
Scenario 1 from monthly Supply (if it is close) use that
If price breaks monthly Below Monthly supply
Scenario 2 supply zone zone
If scrip is all time high
and there is no
Scenario 3 monthly supply zone Monthly Demand Zone
 Stock Investor Plan- Follow Your Broker Reports (FYBR)

Scenario 3 Fundamental Sell: If I have initiated a Buy based on Sharekhan or any other
brokerage report recommendation then I will sell based on the fundamental sell call by the
brokerage report that I have followed.

III. Review of my investments

1. I will review fundamental strength of the companies I have invested in by reading

Sharekhan updates (through Investor Eye) on regular basis
2. I will review my existing investments for the following:
a. Initial Stop Loss (if it has triggered)
b. Monthly and Quarterly supply zones to book partial profits (only for aggressive investor)
c. Scan for new weekly demand zones to identify fresh levels for a re-entry for adding on to my
existing position and after:
i. Partial profits are booked
ii. Initial stop loss has been hit
iii. Trailing stop loss is hit
provided the stock continues to be a fundamental buy

IV. Risk Management

1. I will not invest more than ____________% of my direct equity capital in any one stock

2. I will not invest more than ____________% of my direct equity capital in any one sector

3. I will allocate my direct equity capital as follows:

a. ______% of my direct equity capital towards large-cap stocks (stock included in NIFTY 50)

b. ______% of my direct equity capital towards mid-cap/small-cap stocks

 Stock Investor Plan- Follow Your Broker Reports (FYBR)

V. Activity Planner

DAILY ACTIVITY
1. My preferred choice of reading to keep myself updated on my investments (Please tick):
a) Newspapers
b) Sharekhan FNA Report
c) Investor Eye Report
d) ____________ (other)

2. Check if any alerts have been triggered from your watch-list (Stop Losses, Entry and Opposing

levels)

I will complete the aforesaid activities from _____________a.m./p.m. to ____________

a.m./p.m. on a daily basis.

WEEKLY ACTIVITY
1. In case I do not have time for daily activity I will review the Sharekhan Stock ideas and Viewpoint
ideas through Investor Eye/Sharekhan FNA on a weekly basis
2. Go through the updated list of Sharekhan Fundamental calls in Trade Tiger
3. Scan for stocks on monthly time frame & identify trend ( Up,Down,Sideways)
4. Mark relevant demand zones and put alerts which are minimum 5% away from your entry level
( to ensure you have some breathing space)
5. Check the status of existing Investments based on Investment rules (E.g Initial stop loss, Trailing
stop loss on weekly time frame
6. I will attend/watch recordings of Stock Investing India: XLT every week
7. For my Weekly schedule I will allocate ______ hours every week. My preferred time and day
for doing this : _________ a.m./p.m. to __________a.m./p.m. on _________________ every
week

MONTHLY ACTIVITY
1. Review the economic indicators through Sharekhan reports such as Market Outlook Report/
economic reports of Other brokerage
2. Review sectors through Sharekhan Top Picks/ Sharekhan Sector Reports/ Stock Investing India:
XLT/other brokerage reports
3. Go through the updated list of Sharekhan Fundamental Calls in Trade Tiger
4. Scan for stocks on monthly time frame & identify trend ( Up,Down,Sideways)
5. Review the status of existing Investments
 Stock Investor Plan- Follow Your Broker Reports (FYBR)

6. Check the status of existing Investments based on Investment rules( E.g Initial stop loss, Trailing
stop loss on monthly time frame).
7. For my monthly schedule I will allocate______ hours every month. My preferred time and
day/date for doing this : _________ a.m./p.m. to __________a.m./p.m. on _____________ of
every month

SCANNING DURING HIGH VOLATILITY

Sharp drops offer great opportunities to pick up fundamentally sound stocks at reasonable
prices. Whenever you see such sharp movement in the indices one should scout for
opportunities where the stock is nearing Monthly/ Quarterly demand zones as per investment
rules

VI. Skill Development

1. I will allocate ______ hours per day during weekdays and _________ hours on weekends
towards developing my Market Timing skills
2. I will allocate ______ hours per day during weekdays and _________ hours on weekends
towards developing my Fundamental analysis skills
3. I will enroll for Stock Investing India: XLT and attend the live sessions/ recordings every week to
stay in touch with latest developments