Trading only in stocks, how to achieve high returns.
Unable to trade ETFs (not even SPY and QQQ, which is somewhat unreasonable), unable to use derivative tools such as options, how to achieve excess returns?
First, only trading stocks, meaning only able to go long. When the large cap rises, you should be fully invested as much as possible, but reduce positions or even go short when the large cap falls. Recently, the large cap has been quite strong, so make good use of this hershey.
Secondly, trade leading stocks with strong momentum as much as possible. The strong ones always get stronger, when the index rises by 1%, leading stocks can skyrocket by 10% or even more. The leading stocks may vary each day, so pay more attention to the top gainers list. The cryptocurrency market has been doing well these days, related stocks like COIN and MARA have brought me good returns.
Thirdly, make good use of financial reports. Before this financial reporting season, the large cap went through a sharp correction, many stocks were historically at relatively low levels, and most recent financial reports were disappointing, with Wall Street's general expectations being low, especially for growth stocks. This reporting season coincided with the decline in the US dollar index and Treasury yields, and the large cap saw an unprecedented short squeeze market, where many growth stocks had rare surges as long as the financial reports exceeded expectations and the guidance for the next quarter was not too bad, from the leading NFLX, to the 30% surge of ROKU, also including SHOP, EXPE, DUOL, TME, and others. Actually, I myself am not inclined to speculate on financial reports before they are released (mainly for fear of stepping on a landmine), a more prudent approach is to buy after the financial reports are out. The stocks mentioned above all continued to rise after the financial reports were announced.
Finally, I wish everyone a lot of wealth, winning big!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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