A Review of My Recent U.S. Stock Market Investments and Lessons Learned
In my trading journey in the U.S. stock market this year, my year-to-date (YTD) return has reached 270%, with gains at one point peaking at 600%. Looking back at my overall performance, however, managing drawdowns remains one of my biggest weaknesses, and there is still plenty of room for improvement. For example, when the market peaked in June, I wasn’t decisive enough about taking profits, which directly led to a significant drawdown in my portfolio.
There have been both positives and valuable lessons in how I’ve managed the pace of my trades. One thing I’m quite pleased with is that I decisively increased my positions when the market was near its lows at the end of March, allowing me to benefit from most of the semiconductor sector’s gains. More recently, on October 12, I sensed potential risks in the market, mainly due to volatility that could be driven by CPI data and AI-related narratives. So, over the three days from the 12th to the 14th, I quickly took action and gradually liquidated most of my positions. At present, 70% of the cash in my account is uninvested, and I hold only a small amount of common stock. I feel more at ease after making these timely reductions.
When it comes to individual stocks and options, I’ve had quite a few successful trades. I added to my lite position below 800, then successfully took profits at prices above 1,000. My entry cost for mrvl was 150, and I eventually took profits successfully at around 300. I bought amd between 450 and 500, then took profits at 620. After establishing a position in mu at 310, I took profits in the 950–1,060 range. My options trades involving puts on appl and uso, as well as calls on panw, also went very smoothly overall and delivered solid results.
Of course, there are also some disappointing trades worth reflecting on. With mu, although I made substantial profits early on, my later trades only managed to break even. My entry cost for amat was as high as 600, and the stock’s poor performance meant I ended up closing the position at a loss. My current common stock position in uso is still showing an unrealized loss. rklb brought me substantial returns between April and May, but the portion I bought when I re-entered later incurred a small loss. Also, wolf, which I bought at 55, is currently showing a loss in my account.
In my trading journey in the U.S. stock market this year, my year-to-date (YTD) return has reached 270%, with gains at one point peaking at 600%. Looking back at my overall performance, however, managing drawdowns remains one of my biggest weaknesses, and there is still plenty of room for improvement. For example, when the market peaked in June, I wasn’t decisive enough about taking profits, which directly led to a significant drawdown in my portfolio.
There have been both positives and valuable lessons in how I’ve managed the pace of my trades. One thing I’m quite pleased with is that I decisively increased my positions when the market was near its lows at the end of March, allowing me to benefit from most of the semiconductor sector’s gains. More recently, on October 12, I sensed potential risks in the market, mainly due to volatility that could be driven by CPI data and AI-related narratives. So, over the three days from the 12th to the 14th, I quickly took action and gradually liquidated most of my positions. At present, 70% of the cash in my account is uninvested, and I hold only a small amount of common stock. I feel more at ease after making these timely reductions.
When it comes to individual stocks and options, I’ve had quite a few successful trades. I added to my lite position below 800, then successfully took profits at prices above 1,000. My entry cost for mrvl was 150, and I eventually took profits successfully at around 300. I bought amd between 450 and 500, then took profits at 620. After establishing a position in mu at 310, I took profits in the 950–1,060 range. My options trades involving puts on appl and uso, as well as calls on panw, also went very smoothly overall and delivered solid results.
Of course, there are also some disappointing trades worth reflecting on. With mu, although I made substantial profits early on, my later trades only managed to break even. My entry cost for amat was as high as 600, and the stock’s poor performance meant I ended up closing the position at a loss. My current common stock position in uso is still showing an unrealized loss. rklb brought me substantial returns between April and May, but the portion I bought when I re-entered later incurred a small loss. Also, wolf, which I bought at 55, is currently showing a loss in my account.