DeepSeek sell-off is a great opportunity

I wanted to write this post earlier, but I was busy with life & work. It's very fortunate I sold off my semi positions before the DeepSeek rout. I sensed the greed due to the "Stargate" news (explained in my previous post). Each time some thing surged up too fast too furious, you know it's time to take profits.  

During the sell-off, I did some quick trades using semi and crypto leveraged ETFs. And another easy 10-20% returns. Every time there is fear and deep plunge, there will surely be a quick bounce the following day.  YTD my accounts have beaten the S&P. The volatile market is indeed a trader's dream come true. The market is quite predictable in many ways. Through my daily observations of the market and monitoring of hundreds of stock charts, I have recorded down many patterns and devised multiple strategies to generate low-risk, high-yield returns. I have a few different accounts. 

I hope I can inspire some of you out there to pick up trading. It is not so easy, and yet not so difficult. It just takes a lot of courage, discipline, judgment and emotional control. Sometimes you have to go against your instincts and think logically. For example, buy on fear and sell on greed. It's usually easier said than done. Also you'd need the ability to pick the right stocks to trade. 

  

Past year performance:

More winning trades: 10-20% profits

 Recently, sold off some semi leveraged ETFs when I see them surged so much based on news of "Stargate". Took profits of 10-20% from these trades. When it dips again, I will buy some to trade the bounce. In this year, I think I will allocate more capital towards short-term trading. Imagine you'd just need to have 10% profits for 3 times (using your entire portfolio capital), and that will mean > 30% gains in the year, sufficient to beat the market.    But of course, easier said than done. I have managed to achieve 40-60% CARG in my smaller accounts last year and hoping to achieve the same using my main, larger account, using the same trading strategies.  

I am also looking to buy some strong growth companies on weakness. I noticed some strong stocks, when they dip 5-10%, they will quickly bounce back. Examples are FB, Netflix. 

The first thing any investor or trader should think of is: what is the risk or downside? To me, that's the most important factor before entering a position. There are so many kinds of risks we need to be aware of, so trading is not that easy, but with hard work and discipline, it's not that hard either. I will talk more about the various kinds of risks next time. Also how to pick the right stocks to trade. Stay tuned!

 

 

Recent profitable trades: win rate 100%

Recently, I have made several trades, making anywhere from breakeven to > 10% profits due to the recent volatility. I focus on tech and semi related and non-tech leveraged ETFs that have strong momentum / breakout.  The sideway movements of these stocks make them good targets for swing trading. My frequent mistake is I don't take profit in time, and the profit either drops or turns into a loss, and then I will have to cut loss or wait for a rebound. If the stock is worth holding, I will just hold. But fortunately, so far, my win rate has been 100% for the trades made this year.   

The market is still in fear, the longest streak for the past 3 weeks. I am being careful here and have sold off Monday and IOT which I bought earlier, with a small profit. Still holding onto TradeDesk with a small profit. With the earnings season here, there could be more volatility ahead, though so far we have some good news for the inflation front and bank earnings.  

For the past 2 years, the US market has been going up strongly due to expectations of Fed rate cuts. Now that the rate cuts are expected to slow down, who knows what will happen to the market? As such, I am moving more towards short-term trading. I am waiting for a good entry point to enter long-term for the stocks in my watchlist. I am also having a concentrated portfolio which I can easily focus on given my other committments.  

https://www.cnn.com/markets/fear-and-greed