Hey ! Thanks for joining Research lab and trusting us

Research lab has 2 parts

1) Long term Momentum Portfolio - Focus is on stocks which are growing good with low debt & are in early stages of uptrend. These are based on Monthly price cycles focusing on multibaggers in risk controlled manner. This is the core portfolio. Entry exits all shared

2) MidTerm Trend following Ideas Strategy :

  • Focus on Stocks which are early in the trend cycle (Base 1/2/3) & have good growing fundamentals and the objective is to capture a large part of trend (40-200%)

  • Weekly Charts are focused on rather than daily movements

  • Entry & exits all shared live with Stop loss

  • Logics Shared

  • This is for generating extra returns using short term momentum

Below are the categories divided in Research lab 

1. MidTerm Stocks - These are the MidTerm holding stocks usually multi-month (2-4 month on avg). Stocks which are early in trend (Base 1/2 & 3) & fundamentally growing are picked up. This is for wealth building. If a stock is ahead of the price shared by 2-3% then avoid buying as it increases risk or else buy low quantity only. 

2. Momentum Portfolio- This is the core long term momentum portfolio 

3. Removed Stocks - The exits are also updated live (whether profit booking or stop loss hit, once that is done stock is moved to Removed stocks category. This is for record purposes only

4. Weekly live - Weekly live QnA & new learning session for Champion members. The recordings are uploaded here

5. Beginners - 6 hours of Basic of technicals, trend following is here


6. Strategy Videos- The full strategy recordings are here

> You will receive communication via post in the private telegram channel on real time basis & you can access research lab by login to the website

 

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Portfolio Construction : I divide my portfolio in 2 parts

  1. Core long term momentum portfolio (75% allocation max)

  2. Swing portfolio trades (25% allocation max)

(Above portfolio construction is my own and you need to define your own based on your risk & comfort level )

POSITION SIZING RULES - How I size my positions for satellite portfolio ?

I size my position as per the risk taken in any stock.

I define my risk first i.e 0.3-0.65% of capital is the average risk I take on any position. This is the average risk. The maximum risk I take is 1.5% of capital in relatively very rare scenario. I build up my position in 2-3 parts when things are working and try to retain the risk at same level. In such cases I build up concentrated bets upto 10-18% of overall capital while increasing the stop loss in max risk area. I am comfortable with 30% concentration also if the risk matrix (Max 0.6% of cap) is fulfilled. Minimum I take 3% of capital in any stock as initial buy & max 10% in initial 1st buy. In 2nd buys I will further increase If I get an entry point as per my strategy.

This is my personal risk matrix & your might differ as per your risk tolerance. Not all are same.

Read below to decide your own 

How to decide your qty? (Illustration)

You need to take care of two parts 1st ) Set Max risk 2nd) Max allocation that you decide for yourself so as it doesn't take off your sleep

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 keeping upper cap of max allocation. The 1% example I took above is to explain things and nowhere means recommending the same 

Position size is a deep concept that severely changes PnL account

Thank you

Good Luck

CA (AIR 48 IPCC), CFA L3 Devang Maheshwari

 

In case of any query I am reachable at telegram or you can mail at devang@equialpha.com