Standard Do's & Don'ts

Essential Do’s & Don’ts for Smart Trading and Investing

Before embarking on your stock market journey using Capital Grow’s research alerts and reports, it’s crucial to follow best practices for maximizing success and minimizing risk in trading and investing.

The stock market is inherently uncertain and volatile, and to navigate this environment effectively, we recommend these essential Do’s and Don’ts:

Do’s for Better Investment & Trading

• Always Use a Stop Loss: Set a stop loss for every trade to limit potential losses. Enter the stop loss in the trading system—avoid keeping a mental stop loss.
• Place a Target Order: Lock in profits by placing a target order at the desired price where you wish to exit and book your profits.
• Diversify Your Capital: Only trade with a portion of your capital—spread your risk across multiple trades to protect your investments.
• Capital Preservation is Key: Focus on preserving your capital. Systematic trading over the long term can generate profits if your capital remains intact.
• Use Capital Wisely: As a general guideline, only invest a small percentage of your total capital in any single trade to mitigate risk. For example, if you have Rs. 5 lakhs, allocate only Rs. 1 lakh to a single trade to manage risk effectively.

Don’ts for Avoiding Pitfalls in Trading

• Never Risk All Your Capital in One Trade: Avoid putting all your funds into a single trade. Diversification helps reduce the impact of losses.
• Limit Leverage Usage: Refrain from using excessive leverage, as it can increase risk and potential losses.
• Don’t Share Your Login Credentials: Capital-Grow will never ask for your D-mat/Trading account login ID or password. If anyone requests this information, immediately decline and report it to us at compliance@capital-grow.com.

The Importance of Risk Management

Diversifying your capital is essential in trading. For instance, if your total capital is Rs. 5 lakhs, allocate just Rs. 1 lakh to a single trade. This way, if the trade doesn’t go as planned and the stop loss is triggered, the loss will have minimal impact on your overall capital. Diversification increases your chances of making a profit over time while minimizing the risk of significant losses.

All Recommendations via Mobile App Only

All our research recommendations are delivered exclusively through the Capital-Grow mobile app. Please download the app to receive alerts and updates, and contact our customer support team for any queries.

By adhering to these practices, you can enhance your chances of long-term success in the stock market. Capital-Grow encourages you to prioritize risk management and smart investing for a profitable trading experience.