Hey ! Thanks for joining Research lab and trusting us
Research lab is my personal Mid term momentum portfolio to which now you now have access to. All the trades are based on technicals + Fundamentals and the stocks keep on coming in and out of the portfolio based on momentum. The trades are usually 1-3 months but can go to 8/10 months also depending on the trend
I share the stocks, logics , entry , exits on real time basis so that you can also add the stock and simultaneously learn from it.
> At any time you can log in to research lab and check the active stock list. Any stock close to 1-3% of the price mentioned there can be added. If you buy extended stocks, wider will be your Stop loss from the shared one and wider the risk. For any extra risk that you take, it is upto you as it is against my risk mgmt rules. So don't wait for new stock. Any old stock if not moved much and is under active category can be added
Below are the categories divided in Research lab
1. Actionable Buy - The stock goes to "Actionable Buy" if the buy trigger is pending (usually price is the trigger) so that you can prepare for it as the trigger happens
2. Active Stocks - The Stock Buy has been triggered and is Active now. Most of the stocks I share are on real time basis and are under Active category. At any time you can check list and add stocks
3. Removed Stocks - The Exits i.e Stop loss hit or Profit booking consideration
4. General Updates - General Market updates are shared Under this category
> You will receive communication via post in the private telegram channel on real time basis
POSITION SIZING RULES - How I size my positions?
I size my position as per the risk taken in any stock.
For Example if the stop loss is 10% I will take a maximum of 1% of capital risk & take 10% allocation. If stop loss is 6% the position can go to 25% of overall capital. The highest that I take is max 35% allocation to a single stock if the risk is less & I have super high conviction. The maximum I risk in any trade is 1.5% of overall capital. The minimum I take position in any stock is 3% of capital. If you want to ask an average it's in range of 10-20% of capital -the initial position & then I usually scale down position as stock moves & shift money to new stocks or cash if no new opportunity available or trades not working
How to decide your qty? (Illustration)
It is based out of personal risk appetite & overall market. You can decide the maximum % of capital that you want to risk in any trade. For eg - You decided that the maximum you will risk in any stock is 1% of capital. Now if the Stop loss is 6% in that trade, so the position can be 1/6% i.e 16% of overall capital. If the stop loss shared is 10%, then you can take 1/10% i.e 10% position in the stock. If the stop loss is 4% you can take 1/4% i.e 25% of capital
You need to define your risk per trade as a % of overall capital like 1% of capital or 0.5% of capital or whatever you are comfortable with & then take position accordingly. Keep that risk per trade constant otherwise your results can turn out bad
So in each stock my allocation is different but risk per trade in terms of overall capital is in range of 1-1.5% of capital. You can decide your your range & trade accordingly
CA (AIR 48 IPCC), CFA L3 Devang Maheshwari
In case of any query I am reachable at telegram or you can mail at firstname.lastname@example.org