How I Made $4,109,091 Day Trading In Three Months (December 2020 to the End of February 2021)

How I Made $4,109,091 Day Trading In Three Months (December 2020 to the End of February 2021)

How I Made $4,109,091 Day Trading In Three Months (December 2020 to the End of February 2021) 1024 546 Steven Dux

Intro

When I first started day trading when I was 19 up until 2019, I made over $5 million day trading.

In 2020, I made $4.3 million day trading. But the end of last year and the beginning months of 2021 have been some of the most interesting I have ever experienced in my day trading career, adding an additional $3 million to my trading portfolio, bringing my total portfolio up to $12.3 million. This period has taught me a lot and also given me unique opportunities to tweak my strategies for different situations, adapt to changing environments, and hone my skills further for the future. And the changes and new situations that 2021 will bring, are yet to be seen…

As 2020 was coming to a close, we were coming to the end of a historic year that was so unique that nobody could have predicted how it would affect the trading market.

We can, however, learn from how 2020 ended and how 2021 has begun to understand what to expect moving forward.

As the volatility and unpredictability of 2020 are likely to seep into 2021, in today’s article let’s take a look at how I transitioned from last year into this one. Including what trades I’ve made and why so that you can get geared up for a successful year yourself. Most of last year, just like the rest of the world, I’ve been quarantining and spending my time trading. Owing to so many people working from home, and many having lost their main source of income due to businesses being shut, there’s been a significant rise in trading volume in the stock market. Most people spent the year mainly at home and therefore the world of trading saw an influx of new traders.

The holiday season changes and slows down the market every year but this year was like no other.

In any usual year, people all over go for vacations during the end of the year but 2020 has been one unusual year where people stayed home as much as possible (meaning an increase in the number of players in the market). The worst pandemic in a century brought about one of the worst bear markets ever seen but it was sandwiched by two bull markets at either end of the year. The year began with a bull market and ended with a bull market. In fact, the market recovered pretty quickly after the brief bear market that happened when the pandemic started in full force. 

Market is resilient and as a trader, you have to be too.

It is due to my resilience and the ability to bounce back that I was able to make $1.1 million during the peak of the pandemic. I did not trade every single day in December. As you can see in my Trade Zero brokerage statement below, I took quite a few days off and still managed to make really good profits of $1,056,697.59 in December alone. Most people think that they need to go and place a ton of different trades each and every single day to make money, but the truth is that you just need to make a few good trades each month. As long as you’re maintaining over a 65% win ratio, you’re in for a successful month.

My Daily Routine

The Nasdaq stock market opens in my time zone. Just like usual,  I’ve spent the last couple of months waking up between 7:00 am to 8:00 am.

How I Got into Most of My Stock Trades

After my usual morning routine and freshening up, I go straight to my work station which is just a single gaming laptop (as complicated setups give me a headache). I look for what stocks to reserve to borrow to either short or go long. Most stock traders look for a stock to go up and they want to jump in for the ride up. However, a majority of these stocks hit a resistance point and then begin to go down. And then traders get stuck, hence why over 90% of them fail. You need to take a different approach. By doing the exact opposite of what others are doing, instead of looking for stocks to win, you can focus your time on stocks that are losing to make money.  

Using Pre-Market Scanners to Determine My Positions

When I find these stocks, I start borrowing. I look for stocks that I consider are moving in the right direction to set up a good trade, so once the market opens I can purchase these shares before anyone else. On any regular day, I track a decent number of statistics to specify what the maximum size I can type into our standard ticker. There’s usually a certain amount of positions that are available for a ticker when I make volume trades. In general, there’s a rule that the current data query can’t exceed over 5%. It takes time to figure this out with the statistics to figure out what positions to trade into. It usually comes with experience and after this experience, it becomes second nature.

The objective of this is to reserve your shares early in the market so you don’t have to worry about getting into these positions later.

Trades I made

My December 2020 – February 2021 Review

Month of

December 2020

In terms of profit after commissions, in December I made over $1.2 million. Let us take a look at an important trade to illustrate how December went. 

Stock ticker: $WNW

Trade Dates: December 15 to 17, 2020
Jump: $7 to $160
Shorted at: $120
Covered at $103
Gain: 50%
Earned: $250K

One of the stocks I traded in December was WNW and it helped me earn $250,000 with a gain of 50% of what I invested.

WNW is a stock for a company called Wunong Net Technology Co Ltd, which trades on the Nasdaq. I shorted this stock at $120 and covered it at $103. The stock jumped from $7 to $160. The strategy  that I used for this was shorting into an overextended gap down. This kind of pattern has about a 70-80% win ratio and usually has a return of 26%. It happens around 20 times a year. For my trade in particular, the return was twice as high as the average of this particular strategy. I use a strategy only when it has a win percentage over at least 70%.

Where does one find such strategies, you must be wondering. Strategies that work cannot be found online or in books. They are created by experienced traders and the strategies that I recommend, I share with my students. After years of trial and error I have figured out these strategies so I made them a part of my course, The Freedom Challenge, as I knew I wanted to share my knowledge with dedicated and passionate traders. Here you can see the total amount of returns I netted in the month of December, which is $1 million.  

Stock ticker: $LIZI

LIZI is a stock for a company called Lizhi Inc.

This traded over 20 million shares in the premarket, was very crowded and I broke my rule for this one because I usually tend to avoid crowded stocks. For such crowded tickers, I would recommend waiting till at least 10:30 a.m. EST in the morning before you make any moves so that you give yourself time to analyse and see what approach you should be taking. 

Month of

January 2021

The year has started on a pretty unique note in the sense that even though I have not traded a lot, I have made over $3 million.

This is my Guardian Trading account statement for January and February. 

Month of

February 2021

One of the stocks I traded in February was GME, which is a stock for GameStop Corp. Another stock I traded was BPTH (Bio-Path Holdings).

Stock Ticker: $GME

Trade Dates: February 25, 2021
Shorted at: $150
Covered at $100
Gain: 50%
Earned: $500K

One of the stocks I traded in February was GME, which is a stock for GameStop Corp.

This one was really significant as it helped me earn $500,000! The strategy that I used was bound short. Again, something I discuss in my course. I shorted this stock at $150 and covered it at $100.  

Stock Ticker: $BPTH

Trade Dates: February 10, 2021
Shorted at: $20
Covered at $12
Gain: 50%
Earned: $95K

Another stock I traded was BPTH (Bio-Path Holdings). The strategy that I used was gap up short. 

Summary

Even though not much has been going on in January and February, I still ended up making over $3 million because of individual stocks that made me over $500K.

The following is an image of my Trade Zero account summary for the year so far. Even though not much has been going on in January and February, I still ended up making over $3 million because of individual stocks that made me over $500K. This shows that it is very important to pick the right stocks, so that you increase your earning potential rather than chase stocks all the time. In fact, as good as 2020 was for me (which you can see in this end of year review where I made $4 million in 2020), I’ve already made more profit over the last three months (December 2020 to February 2021) than all of 2020 combined. This is difficult to imagine, but it’s the power of momentum.

Once you adapt to a changing market, there are opportunities. I’m seeing this more and more. Making fewer trades, but enjoying larger gains.

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