Bit of a half and half for me. Started in stocks at the COVID crash, like a lot of folk, with the original plan to go long hold (5-15 years) through to retirement and beyond, using a combo of value, growth and dividend stocks. However I saw a lot of small accounts growing in quick time and decided I’d like to retire sooner if I can.
Tried a few strategies over the past several months; day trades, short swings, long swings, FDA and Earnings plays, IPOs, SPACs.
Have finally settled on a strategy that works for me and is a combination of some of the above.
My ISA has now become my hyper-growth account due to the tax-free nature. That’s not to say there isn’t some anchoring in that account, currently 50% long term holds in steady stocks (AMZN, MSFT, SMT, TSLA, GOOGL) with the other 50% dedicated to long-term (>30 days) swings.
My Invest account is even more weighted to steady growth but with more speculative (but sensible) choices (SQ, GGP, SPOT, STNE, PDD, MELI, SHOP, et al). This is also my experiment account where I test out my own DD picks for validation (NIO, BEKE, APPS, PACB).
The idea is that my Invest account can grow steadily and fund my ISA when the tax year turns over.
A few notes;
In the early days I tried Twitter pump penny plays. Followed a bunch of pumpers and chose a few that crossed more than one account (ie. more than one person pumping it). Didn’t like it; 1 success story, 3 bags currently held and 3 breakevens. Not for me. I’ve subsequently unfollowed 90% of these accounts as I now trust my own analysis much much more than these idiots.
Day trading is WAy too stressful. Even though I am far more comfortable with reading the quicker timeframe charts now, I’ll steer clear of this from now on. Access to AH might bring me back for another dabble but highly unlikely.
Not sure I’d recommend high profile IPO plays. Just another form of Day Trading. With the exception of a very small few (BigCommerce, Rocket Group), I’ve found the best approach is to leave it a couple of days to a couple of weeks, and monitor daily as most will spike and dip. Take LMND as a prime example of even high profile IPOs from doing this - massive initial spike, been slowly dropping almost ever since.
By far my most successful hypergrowth plays have been SPACs. Admittedly the only completed merger I’ve been subscribed to is NKLA, I made 120% on that stock, however I’m currently up 120% on SHLL in my Invest acct and 180% in my ISA. Once that merge goes through I’m selling off teh ISA and putting 100% into either SPAQ or FMCI to do the same. And I intend to domino it with others. They aren’t sure fire, but there are loads of high profile ones out there right now to ride and you can time it right given that the majority offer a rough timeframe as to merging. If you time it right, and get the right profile stock, you’re looking at a good 250-300% by merger +1 week.
So while I’m mucking about with the bad half of my ISA, the rest of my holdings should be ticking away in the background with regular top ups from monthly income and funds from vacating my bags when they finally break even!
Not advice… my strategy.
PS. 15% of ISA is held in cash. 10% Invest held in cash.