Stock Investor Plan- DO-IT-YOURSELF

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

DO-IT-YOURSELF (DIY) APPROACH

I. Selection and Screening of Stocks based on Fundamental Analysis

Keeping yourself updated on Economic developments and determining the
Phase of the Economic cycle
1. Review the following economic indicators on www.tradingeconomics.com on a monthly basis:
a) IIP
b) GDP
c) PMI
d) Inflation
e) Interest rates
f) Money Supply (shown as M3 in the indicators)
g) Gross Fixed Capital Formation
h) Government & Public Spending
i) Trade Deficit
j) Current Account deficit
k) Fiscal Deficit
l) External Debt

Note: Check the economic calendar on monthly basis to keep myself up-to-date on the trend of the
above indicators and predict the possible interest rate scenario which could unfold
 Stock Investor Plan- DO-IT-YOURSELF

2. Use Sharekhan Market outlook Reports or Other brokerage economic reports

3. ____________________________(other)

Shortlist Sectors
4. My preferred approach for sector analysis would be(Please tick):

a) Use Sector rotation chart

b) Reading Investor Eye report from Sharekhan
c) Attend Stock Investing India : XLT where all different sectors would be discussed, frequently
d) All of the above
e) _______________ (other)

Shortlist Companies
5. Scan for stock ideas based on sectors shortlisted above using (Please tick):
a) www.screener.in
b) Investment Magazines
c) Both of the above
d) Sharekhan Fundamental calls
e) ___________________ (other)

Short listing companies using screener. in

I would go to bseindia.com and select Markets tab -> Indices -> Sector & Industry
I will select the required sectors and go to Index Contribution tab to get a list of companies
under the sector

I would then login to screener. in and make a customized screener with following financial
parameters such as:

1. _________________
2. _________________
3. _________________
4. _________________
5. _________________

Short list companies using investment magazine section

I would use Corporate Scorecard section of the magazines such as Capital Market or Dalal Street
Investment Journal
 Stock Investor Plan- DO-IT-YOURSELF

I would shortlist companies under my preferred sectors based on the financial parameters listed
in the magazine

6. My preferred source for Qualitative analysis on the shortlisted stocks would be (Please tick) :
a) Annual Reports (downloaded from www.bseindia.com or company website)
b) Analyst Conference call transcript (downloaded from Investor section of company website)
c) Sharekhan Fundamental Calls /Brokerage Reports/Other sources on the internet
d) All of the above

7. My preferred choice for quantitative analysis would be(Please tick) :

a) www.moneycontrol.com ( to be downloaded from financial section of the company)
b) Annual Report
c) Sharekhan Fundamental Calls
d) _________________ (other)

8. I will then value the companies using following valuation techniques to arrive at an intrinsic
value:
a) P/E
b) PEG
c) P/BV
d) EV/EBITDA

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
 Stock Investor Plan- DO-IT-YOURSELF

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

2. 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

3. 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

4. Once the entry is taken I will immediately put an Initial Stop Loss order, using the following:

Scenario 1: Initial Stop Loss

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

5. 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
 Stock Investor Plan- DO-IT-YOURSELF

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

Scenario 3 Fundamental Sell: If I have initiated a Buy based on DIY framework

/Sharekhan/ any other brokerage report recommendation then I will sell when I believe the
stocks fundamentals are weak or when brokerage report gives a sell recommendation and I
concur with that view.

III. Review of my investments

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

newspapers, Sharekhan reports and brokerage reports on regular basis
2. I will track updates on quarterly results /annual results/attend conference calls
3. 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 in follows:

 Stock Investor Plan- DO-IT-YOURSELF

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

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

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)

3. 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 my investments based on DIY
framework/ Brokerage Reports/Sharekhan Reports on 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
 Stock Investor Plan- DO-IT-YOURSELF

MONTHLY ACTIVITY
1. Review the economic indicators through www.tradingeconomics.com /Market Outlook Report /
economic reports of other brokerage
2. Review sectors through Sector rotation chart/ Sharekhan Top Picks/ Sharekhan Sector
Reports/Stock Investing India: XLT/Other brokerage sector reports
3. Go through the updated list of Sharekhan ideas in Trade Tiger
4. Scan for stocks on monthly time frame & identify trend (Up, Down, Sideways)
5. Review the status of existing Investments
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

QUARTERLY ACTIVITY
1. I will track results and reports on my investments on quarterly basis.

SCANNING DURING HIGH VOLATILITY

1. 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 watch recordings every week to stay in touch with
latest developments