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  • Trading Rules SFA Group

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    siva sumanth
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    The document outlines 12 trading rules for the "Small is Fun Always" team. The rules include: [1] limiting the number of shares in one's account to 8-10; [2] buying stocks a maximum of 2-3 times within defined price ranges; [3] not changing buy levels but allowing sell prices to be reduced; [4] booking profits of 2-5% on the same day for short-term trades or 3-12% for positional trades; and [5] only investing in stocks that pass filters for governance, profitability, and reasonable cash flows. The rules also prohibit futures, options, leverage, and frequent checking of prices.

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    The document outlines 12 trading rules for the "Small is Fun Always" team. The rules include: [1] limiting the number of shares in one's account to 8-10; [2] buying stocks a maximum of 2-3 times within defined price ranges; [3] not changing buy levels but allowing sell prices to be reduced; [4] booking profits of 2-5% on the same day for short-term trades or 3-12% for positional trades; and [5] only investing in stocks that pass filters for governance, profitability, and reasonable cash flows. The rules also prohibit futures, options, leverage, and frequent checking of prices.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    6 views1 page

    Trading Rules SFA Group

    Uploaded by

    siva sumanth
    The document outlines 12 trading rules for the "Small is Fun Always" team. The rules include: [1] limiting the number of shares in one's account to 8-10; [2] buying stocks a maximum of 2-3 times within defined price ranges; [3] not changing buy levels but allowing sell prices to be reduced; [4] booking profits of 2-5% on the same day for short-term trades or 3-12% for positional trades; and [5] only investing in stocks that pass filters for governance, profitability, and reasonable cash flows. The rules also prohibit futures, options, leverage, and frequent checking of prices.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Trading Rules of “Small is Fun Always” Team

    Good morning Team.

    Sharing list of trading rules for all of us to refresh our memories.

    How much money you intend to start with?


    1. Maximum shares you should have in account is 8-10

    2. Each stock to be bought 2 times in total or 3 times


    Example:
    If capital is ₹1,00,000
    Then each stock maxm exposure will be ₹10,000
    Example - if call given is Buy Wipro around ₹350
    Bid to be placed at ₹350-353 (1% range)
    ₹5000/350=14-15 shares
    Buy more at ₹340-345 levels again 15-16 shares
    Hold

    3. Once levels decided


    For buy we shall not touch it
    Rather miss a buy but shift to higher price
    For sell always can reduce by ₹1-25 basis value of share
    ₹100-5000

    4. Targets to be booked @ same day 2%+ to 5%


    If positional then 3-12%
    Book 50% around 5% gain mark rest hold for ultimate target or as suggested

    5. All stocks suggested will be safe which passes our filters like
    Corporate Governance
    Profitable business
    Sectors which will weather difficult times
    Cash flows are reasonable and sound

    6. No place for Futures n Options in our style

    7. Never do leverage trade

    8. Do not borrow money to trade


    Booking small profits is better than letting profits remain in books

    9. Request use part of the gains to help somebody on genuine need

    10. Never over trade or remain glued to screen

    11. Don’t check prices often


    90%+ targets will come
    So question arises how to catch the right moment

    12. Use GTT concept which gives peace of mind and ensures the software catches the intended
    price and helps us trade

    Disclaimer: We are invested in these stocks suggested in our “Small is Fun Always” group and they
    are long term with regular buy. Nobody in the group are not registered with SEBI, hence any
    investment be your risk management with no liability whatsoever on the creator of this document.

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