Glossary

The number everybody reads and the one worth least. The assumptions that produced it are the useful part.

Compute it before entering. Its job is deciding whether to take the trade at all.

Hold risk per position constant and let the rupee value float — the opposite of equal amounts.

The word is defined so that it catches a group rather than only a name on a contract. Which is why the obligation to make an open offer can fall on a set of related entities, none of which crossed a threshold on its own.

Enforces intraday discipline at the cost of flexibility; squared off automatically.

Above the band the RBI raises rates, and that is the channel that reaches your portfolio. Consumer companies take a second hit through input costs they cannot always pass on.

A consequence rather than a choice, and quite separate from the discount rate a valuation calls a required return. Where it exceeds what your capacity for loss permits, the quantities that can move are the contribution, the target and the date — never the allocation.

For a chart reader the consequence matters more than the intent: a stretch of unusually small ranges is not by itself evidence that the next move will be small, so volatility measured over a quiet window understates what a stop has to survive.

Not a prediction — a way of asking before you enter whether the reward justifies the risk.

Payment for the wait and for the chance the scheme never completes. It narrows as approvals land and gaps out the moment one is in doubt.

Sells strength and buys weakness automatically, without requiring you to predict anything.

What turns "stay mostly in equity" into a rule you can check in ten seconds.

Booking something at 2R satisfies the part of you that wants certainty; trailing the rest keeps you in the occasional trade that pays for a quarter. Neither impulse gets to override the plan.

Correct for short windows and for anything about absolute levels — a stop, a target, a strike.

Its real output is a range and a set of stated assumptions, never a target price.

“As much as possible” is the absence of a goal, and it guarantees the target keeps moving.

A candle records how far the session reached each way and throws away when. Any rule with a stop and a target depends on the order, and a backtest has to assume one.

Every ₹1 lakh of permanent annual spending adds about ₹28 lakh to your target.

Fixed targets cap exactly the large winners trend following depends on. Choose deliberately.

A target placed on the exchange, not a promise made to you. When the exchange itself halts, no contingency route helps — nothing trades, for anybody, until the session resumes.

Excellent industry work wrapped around a target price. Take the model and the channel checks; leave the recommendation.