Introduction
- Welcome to my first trading update since I started trading real money in April 2025!
- My portfolio is up 20% in 2 months—exciting progress, but I’ve made mistakes and learned a ton.
- Monthly portfolio recap videos are available on the website.
- Join the Skool group to see all my trades.
- Disclaimer: This is not financial advice. I’m simply sharing my journey and lessons.
My Trading Strategy
- Core Rules:
- Buy at support zones only, using 1-3% position increments.
- Max 10% portfolio allocation per stock.
- Selling at resistance is optional and depends on how much “trading” you want to do. The main focus is to accumulate bullish charts at support.
- Ride momentum but stay cautious if momentum fades.
- Buy the backtest of a breakout, not the breakout itself. Never chase.
- Philosophy: Technical analysis drives my trades. Charts often predict price action before news or fundamentals, as large players (“whales”) move markets in the short term.
- Example: $HOOD hit resistance at $75, as predicted by chart patterns and indicators, before dropping 6% after hours from news. Market makers likely pushed it to resistance pre-announcement.
- Charts > narratives: P/E ratios and fundamentals often lag price action. By the time fundamentals “catch up,” the big move is over.
Why This Isn’t Day Trading
- This podcast is about “day trading,” but my strategy isn’t true day trading.
- I intended to day trade, but my schedule doesn’t allow for opening and closing positions daily.
- My strategy focuses on longer-term trades at support zones, which works well for my lifestyle and has delivered a 20% gain in 2 months.
- You can use this strategy for shorter-term trading, but it’s flexible for those who can’t trade daily.
- Advice for Beginners: Don’t commit to a strategy like day trading until you test it with paper trading. You might find, like me, that day trading isn’t a good fit for your schedule. Experiment to find what works for you.
Key Lessons Learned
- Patience is Key
- Rushed $GOOG trades, entering a support zone as it was dropping, only to see it retrace further. I should’ve waited for the price to settle and confirm the support level.
- Takeaway: Let price come to you—don’t chase. Stocks don’t always V-bottom super quickly, so waiting for support to hold is something to consider. My 1-3% entries help here: if support breaks, I can dollar-cost average down to the next level.
- Sometimes, doing nothing is the best move. Patience avoids costly mistakes and preserves capital for confirmed setups.
- Don’t Obsess Over Perfect Entries: Accumulating doesn’t need to be perfect.
- I missed $MSTR by waiting for a “perfect” retrace. With my busy schedule, I can’t always watch charts.
- Avoid chasing or buying at resistance, but don’t stress absolute perfect entries for longer-term trades.
- Example: Rushed $GOOG trades by not being patient enough.
- Avoid News Narratives and Opinions:
- Sold $HIMS at a small gain after hearing a trader (@TheGreatMattsby) question its price action. $HIMS doubled in 2 weeks!
- Lesson: Stick to charts. News and opinions can mislead, as charts often signal moves first.
- Selling Too Early or Not at Resistance is Tough:
- My biggest mistake was poor timing on sells—either selling too early ($HIMS, $GOOG, $MSTR) or not selling at clear resistance zones ($TSLA, $COIN, $HOOD).
- Selling at resistance is hard: In hindsight, resistance zones were obvious, but I hesitated due to past sales that didn’t work out.
- $TSLA hit resistance at $350-$360 for weeks and couldn’t break through. It fell to $270 (0.702 fib) after Elon/Trump news. Charts showed a breakout backtest, not news-driven panic, yet I didn’t sell, fearing it might break higher.
- $COIN stalled at $270 resistance for many days, and retraced to $245 support. I held, worried it’d surge instead of dip.
- $HOOD melted up to $75 resistance, then dropped 6% after bad news post-Friday close. Charts signaled the resistance days earlier, but I didn’t act.
- Why it’s tough: In the moment, I lack conviction to sell at resistance, fearing a breakout. Past early sells (like $HIMS) made me cautious, but this caused me to miss trading profits. Re-entering after selling is also tricky—support zones exist, but I risk missing big gains if I’m wrong.
- Takeaway: Trading in and out is harder than holding at support. For most, accumulating at support outperforms short-term trading with this strategy. I’m learning to balance long-term holds with selective sells at resistance.
- Risk Management is Key:
- Rushed a full 10% into $OSCR too quickly—risky if the stock retraces.
- Better to dollar-cost average (DCA) slowly to mitigate short-term dips.
- Tough balance between allocated a lot early, which can work well, versus being cautious as stocks tend to always retrace on the way up. Better risk management to be patient with buys. Stocks can double in a few days, but it’s not common and not something to aim for.
- Some Lessons Require Experience:
- Selling a stock and watching it soar stings ($HIMS). Don’t get emotional—re-evaluate or move on.
- Overtrading is real. I made trades just to “do something.” Let price come to you.
- Market manipulation shocked me: Short-term price action can be driven by market makers to exhaust retail traders (e.g., burning options players or leveraged positions).
Wins
- Strong performers: $TSLA, $COIN, and crypto miners.
- The breakout backtest strategy has paid off with many stocks I have purchased. Simple and effective.
- Strategy of accumulating at support zones is paying off, with a 20% portfolio gain in 2 months.
Advice for New Traders
- Charts First: Technical analysis often predicts moves before news. Ignore noise from platforms like X, where bearish calls get views but are often wrong.
- Stay Disciplined: Stick to your strategy. Simple strategies can work if you follow them consistently.
- Avoid Overtrading: The market isn’t going anywhere. Wait for setups.
- Understand Market Dynamics: Short-term price manipulation happens, but long-term, good companies’ prices align with fundamentals.
Closing
- Trading is a journey—mistakes are part of learning.
- Check out my monthly portfolio videos in the show notes and join the Skool group for transparency.
