Trading Guidelines

TO BE STRICTLY FOLLOWED FOR EFFECTIVE RESULTS AND TO ACHIEVE SUSTAINABLE WEALTH

Live Stream: Buy – Only for Trading recommendation with stop loss and liquidity rating, and an Adjust Stop Loss update

Live Stream: Buy – Only for Investing recommendation and an update on an existing position

Live Stream: Conditional Buy recommendation valid only if the stock reaches the given price

Live Stream: market update with sector heatmap

Live Stream: market summary with key indices and fund flows

Live Stream: weekly Market Pulse analysis

Positions: open positions with buy price, stop loss, liquidity rating and previous-day LTP, with the average stop-loss meter

Positions: closed positions with buy and exit price, holding period and P/L

Stock Analysis: price chart, company overview and key financial ratios

To avoid losing all your principal in stock market like majority of the investors, please read these discipline guidelines carefully. Investing in stock market involves real money, and we need to take utmost care of our hard-earned money.

General Definition of Trading and Investing in Stock Market

What is Trading in stock market?

Broadly, trading in the stock market can be considered a form of investing. However, for clarity, trading specifically refers to the buying and selling of shares or stocks of listed companies within a short time frame, which could be a day, a few days, weeks, or months. The primary goal of trading is to earn a profit within this short period

What is Investing in stock market?

Investing means buying shares/stocks of listed companies for long term period, time frame could be as long as 1 year, 5 years or more.

Mint Investing: Key Terms & Guidelines for Trading and Investing

The stock market offers both short-term and medium-to-long-term investment opportunities. Based on these opportunities, we provide tailored recommendations for buying or short-selling stocks. Below are the terms we use in our recommendations:

Buy – Only for Trading (Few Days to Few Weeks) Recommended for short-term trades.
Buy – Only for Investing (Few Weeks to Few Months) Suitable for medium-term investment opportunities.
Conditional Buy – Only for Trading (Few Days to Few Weeks) A purchase recommendation based on a specific price or price range that meets our criteria.
Short Sell – Only for Trading (Few Days to Few Weeks) Recommended for short-term trades.

General Guidelines for Recommendations

Stocks should be purchased or short-sold at the suggested price.
If you miss the opportunity to buy or short sell, avoid purchasing at higher or lowers levels where the risk may outweigh the reward.
Recommendations are posted in the Mint Investing App (Live Stream) during market hours, with a push notification. Keep notifications on so you do not miss them.

Special Note on Conditional Buy

For a “Conditional Buy,” wait for the stock to reach the specified price or range. Avoid purchasing early, as it may not align with the outlined requirements.

By adhering to these guidelines, you can make more informed and strategic investment decisions.

Our Focused Segment: Our research covers only the cash equity segment, even if the stock is also traded in Futures and Options.

Delivery or Intraday: Time frame of each trade is from few days to few months, though sometimes target or stop loss could be hit within a day.

Stop Loss Discipline (Exception: Freak trades, news-based gap-ups or gap-downs, or uncertain market moves, avoid panic and wait for our instructions)

This is the maximum risk suggested. To be strictly followed.

A member should strictly follow stop loss levels mentioned in our recommendation, if the stop loss levels are not followed with discipline, there are higher chances of losing major part of the investment capital, it can be entire capital as well. If a member cannot follow this most important discipline, then we suggest avoiding subscribing to our services. Only increasing the number of subscribers is not our motto, we want to create a family of like-minded people who are disciplined to follow investing rules.

Please Note: It is your responsibility to monitor Stop Loss. Prices in the App are end-of-day (EOD) and update after 7 PM on trading days, so track live prices on your broker platform or place a GTT / stop-loss order with your broker.

Sell Price Levels:

If posted “Sell/Exit” the already bought long positions should be closed/exited now.

Buy To Cover:

If posted “Buy To cover” the already sold short positions should be closed/exited now.

Adjust Stop Loss:

Members should strictly follow trailing stop loss levels once there is significant price movement from buying/short selling price.

Example:

If the stock has moved significantly in our direction, to ride the momentum, trailing stop loss could be brought to entry price so that gains should not get converted in a loss.

GTT (Good Till Triggered) or GTC (Good Till Cancelled)

A GTT or GTC order is a type of stock market order that allows investors to place buy or sell orders that remain active until a specified price-based trigger condition is met

What if the stop loss is hit and then price goes in direction we wanted?

One: After stopping, stock can further go deep down, which can save major portion of the invested capital.
Two: That is part-n-parcel of the trading/investing in stock market, we suggest not to look at just a single trade, P&L calculation should be done monthly or quarterly to effectively understand the results.
Three: Better the risk reward ratio, best would be the results over a long period of time.

What if stock open gaps down skipping the stop loss?

In this case, shall be exited immediately or can wait for another immediate support/resistance if we can hold till then as per one’s risk capacity.

App Features and their uses

1. Live Stream

Recommendations: New research ideas (Buy, Conditional Buy, Short Sell) with entry price, stop loss and liquidity rating, posted during market hours.
Position Updates: Adjust Stop Loss, Sell/Exit and Buy To Cover updates on active recommendations.
Expert Commentary: Market analysis and trends shared to guide your decisions.
Market News: Updates on key events impacting the market, such as economic reports, corporate announcements, or geopolitical developments.

2. Smart Market Tracker (S.M.T)

Shows the trend of the major indices and sectors (Uptrend, Uptrend under pressure, Downtrend, Recovery Attempt), along with market valuation and FII/DII flows, as of the previous day's close.

3. Positions

Open Positions: View active recommendations with entry price, stop loss, liquidity rating, Last Traded Price (end-of-day) and profit/loss status, along with the Risk Exposure meter.
Closed Positions: The full record of closed recommendations, with buy and exit price, holding period and profit/loss, including losses.
Stock Analysis: Brief fundamental analysis about the company and its business, and technical analysis on why the stock was recommended.

4. Focus List

A weekly, curated list of potential longs and potential shorts being actively monitored. A specific buy price has not yet been established, and inclusion is not a buy or sell recommendation.

5. Mint Score

A 0–100 Stock Health Score for NSE-listed stocks, updated end-of-day. It is a stock health indicator, not a buy, sell or hold recommendation.

Capital Allocation

This depends upon the risk capacity of each investor. Below mentioned could be one way of trading with effective risk management.

Example 1: (For Short Term Trading):

Capital for Investment: Rs. 15,00,000/-

Maximum Position in each trade: 10% of total capital i.e., Rs. 1,50,000/-

Maximum Stop Loss: 7% i.e., Rs. 10,500/- (7% of Rs. 1.5 lakhs)

Example 2: (For Medium Term Investing)