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a) Ticket Size:Investment in stock market / threshold amount of money to be invested

There is a no minimum/threshold investment amount criterion to avail advisory service.


b) Basis of recommendations
I offer unique proposition of combining technical analysis as well as fundamental analysis. I use technical analysis to recognize market direction. Fundamentally I look for business model & valuation.


c) Frequency of recommendation
When market is down, it is more likely that I will recommend more stocks and vice versa.
Around Sep-2013 I was optimistic about market as well as felt number of stock can give good return, so I had updated few investment recommendations on blog. 
In 2015 I had predicted downtrend in market. In 2015 I had given very few recommendations via WhatsApp advisory. 
In initial months of 2016, lots of recommendations are given.
When I am positive about future uptrend in stock, I recommend it. There is no particular frequency like one stock a month or like.


d) Target price of stock. 
Positional call: Target price will be usually mentioned along with recommendation.
Medium or long term investment: Target price may not be mentioned along with recommendation. In Feb-13 I had recommended Sun Pharma @ 375 on blog. Stock was expected to do well in coming years. No target price was mentioned.


e) Tracking of investment
All recommendations given are tracked my end. I will post sell call at later date. Though being said investment is for medium / long term investment, based on information updates due to news / quarterly result / price change, calls may be updated.


f) Importance of diversification / How much to be invested in each stock
Investor should invest equally in at least 30-35 stocks, so risk is spread. Investment in each stock can be around 3% per stock of portfolio investment. Portfolio is constructed over a period of time. In case of fall in share price of one stock, impact on overall portfolio is minimal.
If you wish you can increase number of stocks beyond 30-35


g) Clarification on “Buy Around”
Generally stock is recommended at “Buy Around” as market price keeps fluctuating. Stock recommended (post market hours) is based on close price. Market may open with some gap & there will be some variation.
Even stock is recommended in live market (during market hours), price keep varying.


Investor can take own decisions. Depending upon market investor can buy +/- 0.5% or as may be suitable. Looking at past recommendations performance, we have ample profit margins.


h) Low liquidity
Sometimes recommended stock may have low liquidity or may be low liquidity in some hours of day. Investor need to put order & have patience for say 10 minutes or 20 minutes. Lots of clients may be putting order at same time


i) Stoploss is always on close basis.
If stock price closes below stoploss, stoploss is hit. Investor can sell stock on next day.


j) After giving exit / sell / book profit recommendation, I may not be tracking stock or giving updates in future


k) Do Investor needs to send conformation of stock stocks bought / any periodic report?


l) Do I invest in stocks I recommend?
A humour quote I come across on internet. 
“If you recommend a Stock you don't own, YOU LACK CONVICTION.
If you recommend the one you own, YOU ARE TALKING UP YOUR STOCK.”


Restriction by SEBI’s regulation 
“Research Analysts” regulation says
“(2) Independent research analysts, individuals employed as research analyst by
research entity or their associates shall not deal or trade in securities that the research analyst recommends or follows within thirty days before and five days after the publication of a research report.”


Example i)
Let’s take example of Shreyas shipping which declared impressive result on 11-Nov-2014. I guess within 10 minutes of declaration of result, it got upper circuit.


Situation a) if I (Investment Advisor) had bought on 11-Nov at Rs 95, I can recommend it to my Investor on 11-dec at Rs 179. i.e. Investor is buying / paying 88% higher price. 
Situation b) 
i) Technically: if I recommend Shreyas to my Investor on 11-Nov at Rs 95, I can buy Shreyas on 17-Nov @ 115.


Example ii)
I recommend a stock. After few months I wish to give sell call as stock price rises or I felt it may not perform well in coming time, then who should sell first ?
Situation a) If I decide to sell stock, I can ask investor to sell stock after one month
Situation b) If I ask investor to sell stock, I need to wait for 5 days to sell stock


In trending market, stock price changes fast
I felt ultimately Investor (Myself) or Investor (Clients) may be a loser with SEBI’s “Research Analysts” regulation


I will give recommendations on stock, I may not invest
If SEBI /SEBI’s regulation permits, for transparency I may update (but not recommend) stock details in which I make investment
I may invest & recommend same stock following regulation.

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