Swing vs Position Trading / Position Size

Hi MC,

Two questions if you don't mind:

• I assume before you enter a trade, you decide whether it is going to be a swing or position trade. Can you share how you decide which you will go with? I understand a lot depends on conviction. Say for SMCI, I assume your initial entry you went in with the mindset that it's going to be a position trade. So does it entirely come down to conviction? One thing I struggle with right now is getting caught between swing/position trading when deciding on how to take profits.

Every time I buy a stock I am hoping it will be a grand slam. However, most of our trades are singles or strikeouts.  Growth stocks are volatile and I do not like to lose money. Therefore, most of my trades wind up being swing trades. But, I do not know that until I get forced out of a stock. I cannot predict the future and had no idea SMCI would trade from $90.00 to $330.00. However, the stock took off so fast that it has been an easy hold for me. Now that is has formed a high tight flag  the expectation are for higher prices and I see no sell signs. A swing trade turned into a position trade because I had no pre-conceived idea of when to sell the stock.

• You mentioned before your are less aggressive with position sizing now vs the younger days. For those of us still early in our career, how would you advise on trading aggressively but still in a responsible manner? In other words if you were to travel back in time, and would like to achieve aggressive results, what would you change vs what you are doing now? 

If I were younger and had more income then I would take on more risk. We are in the middle of a roaring bull market and I would be 100% invested in leading growth stocks.

• Bonus question: I'm curious your thoughts on our semi such as AMD and MRVL. I know your focus have been on NVDA and SMCI as they are leaders, but I wonder if it is worth considering some of these other names that are still basing.

Yes! This is a good idea in my humble opinion. If you do not own a semiconductor stock and want exposure to that sector those two stocks are quality and acceptable in the portfolio. I hav created. short video to explain my thoughts on this.

Thanks in advance

J

You are welcome!

Regards,

Marty