Thread by @YMehta_

Many who became a Full-Time #Trader in the last two years would be in a dilemma because of the volatility in this market.

Be a part-time trader instead of leaving it.

This #thread 🧵will be on what all #strategies, I personally use to generate active #income in the market.

We will discuss positional trading and investing in stocks and then about option trading.

In #Stocks, we don't take any leverage, so risk is lesser, whereas in #Options it is a leverage instrument, so risk is high and it can wipe out your capital.

#Investment #Portfolio:

This is basically my long-term portfolio, which I create for a horizon of more than 5 years.
There are certain criteria which I use to filter stocks in #Investment.

Mostly look for the sector where you know something.

What are my #Investment Criteria:

🟢Less Leveraged Sector
🟢Not a Cyclical Stock/Sector
🟢Promoter Pledged = 0%
🟢Debt/Equity should be below 1
🟢Sales Growth more than 10%
🟢Promoters should not sell a significant stake in recent quarters
🟢ROE > 20%
🟢EPS > 0
🟢Pay Dividend

These are not hard and fast rule but mostly I look for majority of these criteria to satisfy.

Other than these, I look for the sectors which come under my circle of competence and they are FMCG, Financial, Pharma, Renewables, IT, Beverage, Capital Good.

Once I find out good stocks, then I add it when it's at good support. Also, I pyramid the stocks when they retrace to critical Demand Zone.

This is how my Long-Term portfolio is created.

Now, the benefit of this is I don't have to buy/sell frequently here, plus I can generate good long-term returns on this and additional Dividend Annually.

I pledge this portfolio so that I can get collateral on which I do Option Selling, which we will discuss later.

After creating a portfolio, let's say if it doesn't perform for a year, then there will be no returns. For generating rental returns on portfolio, one can sell OTM Call options.

So for every 2 L #Investment one can sell 1 Lot of Call option with a premium of 10-15 on Thursday

Let's discuss #Investment Strategy based on Technical Analysis.

So I use #CCI Indicator and already shared a detailed strategy on the same:

https://twitter.com/YMehta_/status/1497510104156962816

Second Strategy is using #RSI which is being shared here in this thread.

https://twitter.com/YMehta_/status/1451526069706584065

Other than this I use EMA extensively on Weekly/Monthly Time Frame to find out trailing support to pyramid the stock more in downtrend.

Time Period for EMA is mostly 200 Week/Months.

One can check the strategy here:

That's all about #Investment.

https://twitter.com/YMehta_/status/1447532168138276865

Now talking about Positional Trading in Stocks with Time Horizon of 1-6 months.

So most of the time I use the Volatility Contraction Setup. This is my favourite trading style.

One can check the entire setup in this thread.

https://twitter.com/YMehta_/status/1474379856561328129

Next comes Swing Trading for less than 1 month.

So in this I use Volume Spurt Setup which I had shared last week only. One of the setup where Risk:Reward is decent.

https://twitter.com/YMehta_/status/1540579190251982848

Other than this, I use Price Action and trade on the basis of support and resistance.

Mostly for less risk, I focus on buying stocks where is a sign of reversal when a stock is at support.

I have shared a list of screeners which I use in stock positional trading.

One can check the entire screeners list in this thread.

https://twitter.com/YMehta_/status/1417822494791135233

Now talking about #Option #Trading.

So here I do IRON Condor on #Nifty and focus on getting 1-2% returns in a week.

One of the strategy that I had shared for Positional Option Selling.

https://twitter.com/YMehta_/status/1460969857483087872

Note: For Option Selling, Use 1L Investment Margin for doing IRON Condor, although required capital is less.

There should be some cushion in case of loss/breakdown.

To decode 1-2% returns on 1L Margin, you need to capture 20-40 points in a week in #Nifty.
Try selling Far OTMs.

Other than this, one intraday option selling model is working that captures theta decay in #intraday, which requires one to put in 10 minutes in a day.

But won't suggest as it will deviate from part-time trading.

All these are personal strategy which I am using as of now. Something might work for you and something won't. So use the strategy which works for you.

In case of any queries, feel free to ask in the comment section of the tweet. I will try to answer all the queries.

To catchup with more such Trading and Investment strategies, you can follow @YMehta_.

Also, if you found this thread helpful, then give a thumbs up by liking ❤️ and retweeting 🔄the first tweet so that it reaches to maximum people.

https://twitter.com/YMehta_/status/1542491464965320705