SCHOOL IS IN SESSION: Here Are Some of My Trading Tips

My latest trading stratagem in a nut shell.

Since December I implemented a new trading strategy to force myself into a 100% long position at all times — mostly because I was and still am too bearish. It was designed to protect myself against myself. I can’t help but to feel certain ways — but I can certainly do something about it and behave in a logical way to further my position.

The 100% long picks are all picked using my growth quant method, which employs a sundry of fundamental factors — all but assuring that picks are solid companies but also growing revenues and all have very good free cash flow. The last thing I wanted was a portfolio filled with AFRMs. I was emboldened by this method after seeing the quant produce a 7% return last year — which was terrific all things considered.

After my longs are picked for the week (every Monday), my only job is to either hedge to prevent losses or boost returns via day and/or swing trading using margin. And that’s it.

The results:

Much of the +29.5% YTD returns are due to my additional trading. My monthly quant account is +6.7% YTD, which is more in line with markets. My outperformance is due to the fact that on bad days I am often heavily hedged and my timing has been good. Another reason is when markets are very good — I employ the volume tools inside Stocklabs to find me runners and have been very fortunate to find them using very specific methods.

All of the screens are inside the platform — but the basic tenets I use are as follows.

Find stocks within 2% of session highs. Mean reversion is fine — but I’d rather squeeze 2% out of a runner at session highs than catch a falling knife in the hopes the current trend will reverse.

Find stocks with volume breakouts. My volume delta tools analyzes the volume of all stocks pro-rated on a minute scale using a 30day average. If there is a volume spike in the making, I will know about it right away. The big runners are always paired with volume breakouts.

Do not concern yourself with fundamentals when trading intraday or overnight.

Gravitate towards liquid stocks — volume of at least 500,000 shares per day. If it’s late in the session and I want a pop, I look for stocks with 2m+.

If you cannot find any ideas — you might want to buy an inverse ETF to hedge. Often times when ideas are scarce — it is because the market is topping out. When in doubt, sell short.

Keep track of intraday QQQ chart using a 5m scale all day every day and look for breakups and downs. Do not sell short into massive down candles and do not go long into massive melt ups. Often times after big candles, you will see a little mean reversion.

Keep losses and gains tight at 1-2%, sometimes even smaller. The point of using margin is not to be greedy — but to boost returns on existing positions.

There are times when I will ignore a 1-2% loss in a hedge, providing I already have nice gains for the session and intend to average down.

Position sizes start at 5%. Double sized position is 10% etc. I rarely buy stocks at more than 5% — but will double or triple it for a day trading — but on rare occasions. Often times when needing to average down, I will reduce my adds to 2.5% positions in an attempt to stagger my buys as it trades lower in the hopes of a major upside candle to get me out. When a bad trade all of a sudden turns close to break even — I sell and count my blessings. I am not interested in making money in it only to get out alive.

Position sizing and stopping out of losses are the most important things when trading. Anyone can pick good stocks — but many fall prey to greed and ego — which causes them to blow up.

One final note: If long 100% growth stocks, I’ve found the only way to truly hedge into a net short position is to have 40% of assets margined into an inverse ETF. There are many inverses to choose from. I would suggest gravitating towards the most liquid and correlated to the market — which happens to be SQQQ, SOXS or TZA. The best one, in my opinion, is SQQQ. If you want to target a class of stocks specifically, you can buy FNGD, DRV, FAZ, LABD — but just know there will be times when they do not correlate well with markets and you might end up with a hedge that not only didn’t hedge but added to your losses.

You need to understand there are levels to this game we play. At the top are complete assholes who are bereft of any skill. Basically they’re all demons and devils who are corrupt enough to trick others into giving them money. They then employ others to leverage that money into larger sums and they fuck off for the rest of their lives rich as fuck.

Then there are people like me, plebs with innate skills who are used by the devils on top to get rich as fuck and fuck off until death. I’ll never attain grandiose wealth, just enough to get by and afford the many luxuries that I deserve, by natural law.

I’ve concluded long ago that I do not need grandiose sums of wealth. It’ll probably turn me into a demon, or worse a tranny. This way, I get to chat with proles all day long and yell at them when they do stupid things and they thank me for the abuse I dole out. I can only get away with these sort of tactics while successful, in a state of peak performance — such a state that literally nothing can stop me.

I AM SKILLED LABOR in these markets, an artisan of sorts — a man who understands his weaknesses and strengths and knows how to swim when the waters are calm — but most importantly when rough.

I tell you these things, even though it means less than nothing to you, because I can and I usually do the things I can and avoid the things I cannot.

The ISM numbers came in hot. CRM, VEEV, OKTA all smashed on earnings. It seems to me SAAS stocks are back in play and not just on a dead cat bounce basis, but fundamentally strong.

Biggest winners in SAAS YTD

Are we past the point of being scared about more Fed hikes because the economy is doing so well? Or are we still scared future Fed hikes will hurt whatever it is we have going now? One cannot deny it, no matter where you look — things are stabilizing to getting slightly better. I don’t see how it’s possible. But then again, they once told us there was a helium shortage and kids couldn’t get balloons at their birthday parties because of it.

After the ISM numbers were released this morning, markets dumped and I hedged my portfolio just in case and now we shot back higher, which makes sense since rates are actually decreasing — but I still have my hedge. It’s sort of ornamental now and just look at it without expecting much. I am, however, on the prowl for some momo plays.

I wantonly underperformed today, trading +20bps for the day. But on a YTD basis, I’m up 26.6%. What are you up?

See pal — that’s who I am and you’re nothing.

I think tomorrow I’ll make more. I took most of the day off preparing for the arrival of ANTIFA FLY and made some poor hedging bets into an up tape. I did that because I was out and wanted to freeze things, since I have a PERMANENT 100% long book. What if markets tailed out and I wasn’t around to manage it? It might lead to a 1 or even 2% drawdown.

I cannot allow such things.

This way, when I am out — I simply hedge 20-40% with SQQQ, or another inverse, and go about my day without a worry in the world.

BEHOLD THE PAEGENTRY — FUCK YOURSELVES!

I wake up every morning and hope today is the day — the end all for all crashes — final stop so to say. However, it never happens and even when it looks like it’s gonna happen, 2001, 2008, 2012, 2020, it doesn’t actually happen.

But this time is different etc etc etc.

Sadly, and this is important for you to understand, we are living in an era where the GLOBONEOCON is supreme. You cannot defeat it and we will likely die under its dictate. Whilst some believe “this is freedom” — it’s not and it’s tyranny and the only way to win is to lose. Nevertheless, my feelings and words mean nothing because I hold no sway over these things. The foundations for American power were established decades ago under the aegis of free markets. Since the mid 60s, there has been a takeover of these institutions and we are now in the process of IMPLOSION — because those who now control the machinery of America are morons and spiteful and obviously unable to create anything great.

Ergo, it’s only a matter of time until their reign ends. But when?

That’s what I’d like to know.

The good news is we now have a normal interest rate. The bad news Pax Americana is over. The good news — never short a dull market.

So I won’t.

-35bps midday.

As the world crumbles into the smallest of pieces thanks largely to the PIECE OF SHIT neocon scum who rule the west with an iron fist, it’s important to remember there are some enclaves of freedom out there. Here at iBankCoin, I largely talk to myself and drop TRUTH BOMBS on unsuspecting readers, enlightening them to certain facts, such as, but not limited to: nukes aren’t real, space is a painting, the lunar landing was and still is impossible, America lost WW2, Mary Lincoln SHOT AND KILLED her husband, life did not start in Africa and we’re not all homo sapien sapiens, the earth is obviously flat, gravity is a scam, satellites are balloons, Russia and China aren’t the bad guys.

Life is going exactly as planned for yours truly. I managed to bob and weave today and produce a gain of 1.48%. It’s fairly easy and simple to make money these days and I suspect I will make a lot more this year. If you’re having trouble navigating the market — do not worry for I am here to show you the way. Consider me to be a tour guide.

I closed leveraged long without hedges, especially keen on oils and natty.

Listen to me. You can weave as many boolish stories as you want. You can dress up your homes with gilted brocade and adorn it with the finest mahagonay furniture and maple trim. But if said house itself is crumbling from years of mismanagement, all of the finest upholstery in the world, decadent millwork and state of the art electronics, the house will fall.

Let’s go over the Federal balance sheet for a moment.

Expenditures:

Social Security $1.2t – they tried to kill off granny with COVID but largely flopped, so the expense increases.
Health: $915b
Welfare: $850b
DEBT ON NATIONAL DEBT: $865b (14% OF ANNUAL BUDGET)
Defense/Ukraine: $800-$1t
Medicare: $755b

Entitlements, entitlements. It’s over. Not only is it over — but also cooked. With rates climbing daily, the interest expense on the $31t in debt we owe increases daily. On top of that, we run deficits of $1 to $3 trillion per annum, so every year the balloon gets bigger and bigger as the people inside of the crumbling home get greedier and greedier, adorning it with the finest flooring and chandeliers money can buy.

It’s important to remember, especially when you don’t know what you’re doing, that some people still do. I present to you a status update: RECOURD HIGHS.

Enough is enough already. When is that son of a bitch gonna lose money?

I have my bias and the market doesn’t care and keep going up, so I follow her. I’m 110% long, no hedges. Whenever the market breaks lower, I hedge with 10-40% of my account into SQQQ or some other bedeviled inverse etf and trade is quickly, profit or loss.

The market is very easy, providing you don’t complicate things with your feeeeelings.

I closed out the session +186bps, +8.2% for Feb without any hedges, leveraged long into the teeth of March. The pin action was terrible towards the end of the day and I had hedges in place to deal with that. Bottom line: although it seems like the market should collapse, and we all pray nightly for it to happen, it doesn’t. Because of this, I am inclined to believe we will not CRASH into March and might instead melt up a little.

Bear in mind, my opinions are mostly useless the second I publish them. I excel at real time trading and galvanizing ideas over short durations. Although my opinions can be somewhat useful, if I am being honest with myself and yours truly — my value lies in the now.

As of right now I am bullish. That can change tomorrow.

CIAO

It wasn’t all champagne corks into the faces of laughing fat men in February. We had some severe drawdowns in a number of stocks. Here were the highlights, or lowlights — depending on your point of view.

BABA -20%
JD -25%
MRNA -21%
SIRI -23%
LCID -22%
MTCH -23%
BILL -26%
W -32%
LYFT -37%
LUMN -34%
CHGG -23%
AG -23%
WRBY -21%
CGC -23%
OPEN -31%
BLNK -33%

INDUSTRIES

Synthetic Biology -22%
Silver -17%
Cannabis -16%
Online shopping -16%
Electric Vehicles -15%
Medical Equipment -17%
Chinese Burritos -11%
Nuclear -10%
Solar -10%
Biotech -9%

SECTORS

Healthcare -7.5%
Basic Materials -5.5%
Tech -4.8%

WINNERS:

Tankers +17%
Long term care +8%
Shipping +6.5%
Semis +4%
Auto dealerships +4%
Movie theaters +3.9%