My Investing Philosophy: Discover my Approach to Winning in the Market
Hello everyone,
Welcome to My Weekly Stock, where we blend in-depth market analysis with proven momentum-based trading strategies. My mission? Help you navigate the financial markets with unbiased, data-driven, and actionable insights.
Since many new people are consistently joining us, this post will work as a perfect way to reintroduce you to My Weekly Stock and my approach!
So, let’s get started!
My Journey
I started investing systematically in 2015, though it took me some time to navigate my way through. Like many others, I fell into common traps: selling winners too early, doubling down on losing positions, holding onto losers for too long, and getting swept up in market manias.
After recognizing the need for change, I spent considerable time reflecting on and structuring my approach. It became clear that I needed a disciplined, structured approach to investing that could adapt to my lifestyle and commitments while remaining rooted in quantitative analysis and pragmatic decision-making.
Why My Weekly Stock?
I launched this newsletter primarily because I believe in the value of my approach and want as many people as possible to benefit from it. Additionally, there's a limit to how many trades one can execute due to constraints like time and capital. By sharing my insights, I hope to provide you with opportunities that I might not be able to take advantage of myself.
Writing this newsletter makes me a better investor and acts as my personal flywheel: the more I write and conduct research, the better I become at investing. This, in turn, makes me more willing to write more content.
Over the years, I've followed numerous accounts, services, and newsletters. Some have been incredibly helpful and have significantly contributed to my development as an investor. Others, unfortunately, were outright bad. These experiences have been instrumental in defining what I wanted to achieve with my newsletter.
Unbiased & Data-Driven
I'm convinced successful investing is built on eliminating emotional biases and relying on data to make decisions. My strategies are shaped by a robust foundation in technical analysis, complemented by my deep understanding of fundamental research.
Simple & Actionable
My approach is designed to be practical for both novice and experienced investors. Because I complete most of my analysis outside market hours, they are easily replicable and compatible with various lifestyles and commitments.
Transparency & Ownership
I am dedicated to building honest and transparent relationships with my readers. It entails being upfront about my performance, sharing openly the strengths and weaknesses of my strategies, and admitting mistakes.
If you like what you've seen so far, why not subscribe to the newsletter and explore the premium section for more in-depth analysis and exclusive content? Every month, I share cover 75+ US stocks and ETFs and show you how I connect strategy to insights, and ultimately portfolio decisions.
My Approach: All About Momentum
I aim to identify stocks with strong positive momentum and ride their upward trend for as long as it is viable. While timing the market to perfection is not my goal—since catching the exact highs and lows is more a matter of luck than skill—my experience and research have proved that there is significant profit to be made in the meat of the move.
But what is Momentum? Investopedia defines momentum trading as below:
Momentum trading is a strategy that seeks to capitalize on momentum to enter a trend as it is picking up steam.
Simply put, momentum refers to the inertia of a price trend to continue either rising or falling for a particular length of time, usually taking into account both price and volume information.
For years, I have been reluctant to buy stocks at recent highs. I would convince myself I was too late to the party, the stock was too expensive, or the trend was due for a reversal. I would sit aside and watch these stocks making new highs, week after week. I would wait for the next 10% pullback to get in. By then, I missed most of the ride up. Worst, I would often enter just when the trend reversed and find myself owning stocks on a downside trend.
To illustrate this, let’s look at the example of Apple in 2019. In mid-October 2019, the stock made a new all-time high and started breaking out after trading in a range for the previous 12 months. Between October 15th, 2019, and January 31st, 2020, the stock made 46 new highs during 75 trading sessions. Said differently, the stock would post a new high less than every two days. During that period, Apple stock went up 32% vs. 8% for the SP500, outperforming the market by a factor of 4. All pullbacks during that timeframe were lower than 5%.
My Investing Strategies
I have 4 different strategies, each tailored to different investment horizons:
Momentum Picks: my short-term tactical play.
Swing Trade Portfolio: my comprehensive mid-term strategy.
Macro ETF Portfolio: my long-term, macro-driven allocation across equities, bonds, commodities, and crypto.
Stock Investing Portfolio: my momentum-backed selection of fundamentally strong stocks for long-term growth.
In the below post, I break down these strategies, showing you exactly how I select trades, manage risk, and optimize returns:
Pros & Cons of My Investing Strategies
Pros:
Ease of Execution: My portfolios require little maintenance, given signals are generated outside market hours. It is, therefore, compatible with various lifestyles and investing styles.
Favorable Risk-Reward: Historically, the risk-reward ratio has been good as losses are quickly cut while I let winners run. Back-testing also showed that the strategies tend to hold well during bear markets.
Alignment with Various Investment Horizons: My strategies are suitable for everyone, whether you're looking for quick trades or prefer long-term investments
Cons:
Discipline and Risk Management: Success in implementing these strategies requires discipline, particularly in adhering to buy/sell signals, portfolio allocation criteria, and stop-loss rules.
Market Transitions and Signal Strength: My algorithms and indicators may face challenges during market consolidations or significant trend changes. These conditions can affect the timeliness and strength of the signals, occasionally leading to sizeable drawdowns if not managed carefully.
My Performance
As part of my commitment to transparency, here's an update on my performance at the end of 2024 and since the inception of the portfolios.
All my portfolios are tracked live via SavvyTrader and a Google Sheet tracker.
Past performance does not guarantee future results.
Conclusion
I hope you enjoy reading this post and learning more about My Weekly Stock and my approach to investing.
My goal with my newsletter is to show you how I connect strategy to insights and, ultimately, portfolio decisions. Sharing my holistic, end-to-end framework is the best way to bring value to you and truly help you become a better investor. But, remember, success won't come from just blindly copying someone else’s trades. Instead, do your homework and see how my work can feed into your own investing approach. After all, while I can help you navigate the markets, the journey is yours to take.
And whenever you are ready, I encourage you to explore the paid section. Paid subscribers unlock full access to my winning portfolios and so much more: a comprehensive investing framework, momentum-driven analysis, and live portfolio updates.
As a bonus, your first month as a paid subscriber is entirely FREE, giving you an opportunity to explore the full value of my analysis and portfolios.
Until then, happy investing!
My Weekly Stock
DISCLAIMER
The information provided in this newsletter is for informational purposes only and should not be taken as financial advice. Any investments or decisions made based on the information provided in this newsletter are the reader's sole responsibility. We recommend that readers conduct their own research and consult a qualified financial professional before making investment decisions. The author does not assume any responsibility for any losses or damages arising from using the information provided in this newsletter.
Really good blog explaining your different strategies. I personally prefer long term investing where I focus on EFTS and some good individual stocks.
Thanks for Sharing !!!
Wish to try