Do’s and Don’ts – RAIStocks

1. Capital Protection and Risk Management Responsibility

Responsibility of Capital Protection

The responsibility of protecting your invested capital lies solely with you, the client. As a SEBI-registered Research Analyst, we provide research and analysis only. We do not execute trades or control your funds. You are fully responsible for managing your capital, placing trades, and adhering to prudent risk management practices.

Position Sizing and Risk Management Guidelines

To help clients manage risk prudently, we recommend the following risk and position sizing framework:

• Position Size: The capital allocated to any single trade should be between 6% to 16% of your total trading capital.
• Risk per Trade: The loss you are willing to tolerate on any single trade (i.e., the stop-loss risk) should not exceed 4% to 12% of the position size.

This framework results in an effective capital risk ranging from 0.24% (minimum) to 1.92% (maximum) per trade, calculated as:

Strict Compliance Recommended

Clients are strongly advised to adhere strictly to the above position sizing and risk management parameters. These guidelines are designed to help you preserve capital and reduce the impact of adverse market movements. Non-compliance with these recommendations may result in higher-than-expected losses, for which we shall not be held liable.

Weightage-Based Trade Execution

For each trade, weightage or lot size will be communicated to you in advance. You are expected to execute trades strictly as per the weights communicated. This weight-based approach serves as a capital protection mechanism and is designed to reduce the potential adverse impact on your portfolio.

For investment and swing recommendations in the cash segment, stop-loss levels may not be provided. However, you must follow the weightage communicated for each trade. Adherence to the recommended allocation acts as an implicit shield, helping to safeguard your capital from severe market downturns.

2. Raistocks.com Do’s

• Read the trade recommendations carefully.
• Weight assigned to each trade is for your capital safety. Please trade accordingly.
• Understand the risk attached to the recommendation.
• Take action only after completely accepting the risks it carries.
• Always maintain stop-loss discipline. Exiting on SL is part of risk management—not a failure.
• Follow position sizing guidelines strictly. Do not overleverage, even in high-conviction trades.
• Stay updated through our official communication channels—Telegram, dashboards, or Emails.
• Maintain a trading journal to log entry, exit, reasons, and emotional state. This builds awareness and discipline. Our dashboard has the option to journal everything.
• Give each strategy sufficient time to perform. Avoid judging based on 1–2 trades.
• Communicate with our support if anything is unclear—doubts lead to wrong execution. Clarity leads to results.

3. Raistocks.com Don’ts

• Don’t trade blindly without reading the full recommendation and its context.
• Don’t change the position size based on emotions or recent wins/losses.
• Don’t skip the stop loss. One skipped SL can wipe out profits from multiple trades.
• Don’t combine our trades with other external tips or conflicting strategies.
• Don’t expect 100% accuracy. Focus on long-term consistency and risk-reward edge.
• Don’t take revenge trades or double down after a loss. Regain composure before your next trade.
• Don’t trade with money you can’t afford to lose or capital meant for essential expenses.
• Don’t hesitate to ask questions. Staying silent during confusion often leads to wrong trades.
• Don’t overtrade or chase trades out of FOMO (fear of missing out). Trade the system, not emotions.
• Don’t ignore reviews, updates, or changes in levels that we communicate. Staying updated is part of the system.

Closing Note