NOTICE TO READERS: The content in this post is for educational and informational purposes only and does not constitute financial, investment or legal advice. The trades listed below are not recommendations to buy, sell, or hold any security. Trading stocks and options involves substantial risk of capital loss, so always do your own research before investing. I am not a licensed financial advisor. I’m not qualified to answer questions regarding trades, strategies or general stock trading. To protect operational privacy, I also do not disclose the brokers, platforms or software used to manage my portfolio.
My daily routine has changed in ways I never anticipated once I took stock trading seriously. From the moment I rise at six until the market closes at one, I work an estimated three cumulative hours managing my portfolio. Once that closing bell rings, I’m free to enjoy the rest of my day — as I should with any part-time “job” where I’m the boss.
The portfolio’s valuation rose 9% above its baseline due to my recent successes. To fairly compensate myself, I’ve transferred most of those gains into my checking account — enough to cover THREE wine country getaways. Meanwhile, I’ve retained the rest in my portfolio so it can withstand the ebb and flow of holding dividend stocks long-term.
Now that I’ve covered my “paycheck”, we must review…
For new and existing readers, here’s the updated rules that govern how I manage my portfolio positions:
The Targets: I buy and hold a position with the goal of securing a 5% or greater gain when executing a sale. My weekly goal is to grow my portfolio’s valuation by 2% or more.
The Reality Check: The market never guarantees a return. There’s always a risk an executed sale results in a gain below my goal, or worse yet, a direct loss of capital.
The Capital: My portfolio represents a small fraction of my net worth. These trades are an additional, potential revenue stream to complement my core, long-term investments.
The Opportunity Cost: I accept the possibility I’ll miss out on greater gains when I sell a position that meets or exceeds my 5% target.
The Compensation: Any amount over the portfolio’s baseline value is considered a distributable profit. I will sweep most of these profits into my checking account every other week to “pay” myself, while the rest preserves the portfolio’s baseline value.
Now that you know how I roll, let’s review this week’s win and losses.
To maintain strict personal privacy, all individual share quantities and raw dollar values are omitted. Instead, allocations are tracked conceptually by entry targets and realized percentage gains. Please note, I held SanDisk (NASDAQ:SNDK) on three separate occasions this week, and Marvell Technology Inc (NASDAQ:MRVL) twice.
PORTFOLIO PURCHASES (BUYS)
SanDisk (NASDAQ:SNDK) | On Monday morning, I used a new (to me) investing tool to acquire shares before the opening bell. You can read about my experiences later in this post.
Dick’s Sporting Goods (NYSE:DKS) | I deployed two tranches to take advantage of Monday’s opening bell dip.
Broadcom Inc (NASDAQ:AVGO) | Similar to DKS, I made two partial capital allocations during Monday’s trading session.
SanDisk (NASDAQ:SNDK) | Tuesday’s early morning downturn resulted in an irresistible entry point, then I deployed additional capital during Power Hour.
Marvell Technology Inc (NASDAQ:MRVL) | Tuesday’s dip produced an ideal entry point, and I’ll tell you all about that roller coaster ride in a bit.
Kenvue (NYSE:KVUE) | I added a fourth dividend stock on Wednesday to complete my portfolio’s defensive position.
SanDisk (NASDAQ:SNDK) | I couldn’t resist a pre-market dip during Thursday’s watchlist review.
Hormel Foods (NYSE:HRL) | Effectively replaced PepsiCo (NYSE:PEP) as part of my portfolio’s dividend defensive position.
Ulta Beauty Inc (NASDAQ:ULTA) | I waited patiently for my desired entry point throughout Thursday’s trading session, then executed my trade.
Marvell Technology Inc (NASDAQ:MRVL) | Re-established this position Friday morning in anticipation of next Thursday’s earnings call.
Dell Technologies Inc (NYSE:DELL) | After I realized the stock has pricing resistance above my desired target, I executed a trade during Friday’s Power Hour.
Best Buy Co Inc (NYSE:BBY) | A less volatile replacement for Ford (NYSE:F) within my portfolio’s dividend defensive position.
PORTFOLIO LIQUIDATIONS (SELLS)
Salesforce Inc (NYSE:CRM) | -3.6% loss | Monday’s downturn triggered my stop-loss order to execute my exit.
SanDisk (NASDAQ:SNDK) | +4.4% gain | I rode the momentum of a strong Tuesday pre-market surge, then exited when it stagnated after the opening bell.
Broadcom Inc (NASDAQ:AVGO) | -4% loss | Tuesday’s business news triggered my stop-limit order to prevent further capital erosion.
Marvell Technology Inc (NASDAQ:MRVL) | +13.4% gain | A Wednesday pre-market surge allowed me to pocket a huge gain.
SanDisk (NASDAQ:SNDK) | +5.2% gain | I also pocketed this gain before Wednesday’s opening bell.
Cisco Solutions (NASDAQ:CSCO) | Nominal gain | I exited a stagnant investment midday Wednesday to free up capital.
PepsiCo (NYSE:PEP) | +3.6% gain | I executed three separate transactions during Wednesday’s trading session to lock in gains.
Dick’s Sporing Goods (NYSE:DKS) | -3.1% loss | Exited the stock during Wednesday’s Power Hour to preserve capital.
Ford (NYSE:F) | -3.9% loss | I trimmed this position to rebalance the risk in my dividend defense position.
Altria Group Inc (NYSE:MO) | Nominal gain | Similar to F, this was also a risk rebalancing.
SanDisk (NASDAQ:SNDK) | 5.2% gain | I pocketed this gain shortly after Thursday’s opening bell.
Ford (NYSE:F) | Nominal loss | This trade frees up capital for its eventual replacement within my dividend defensive position.
As Loverboy’s anthem with alternate lyrics suited for stock traders plays in my head, I currently hold the following open positions as of Friday’s closing bell:
- Altria Group Inc (NYSE:MO)
- Kenvue (NYSE:KVUE)
- Hormel Foods (NYSE:HRL)
- Ulta Beauty Inc (NASDAQ:ULTA)
- Marvell Technology Inc (NASDAQ:MRVL)
- Dell Technologies Inc (NYSE:DELL)
- Best Buy Co Inc (NYSE:BBY)
An animal rummaging through a neighbor’s trash can stirred me awake well before sunrise Monday morning. I couldn’t go back to sleep, so I logged onto my trading platform and quoted SanDisk (NASDAQ:SNDK). Its pre-market bid price was too high for my tastes, so I submitted my first extended hours limit order at my target entry point. I attempted to go back to sleep, but a phone alert forty-five minutes later confirmed my order was executed.
As I sipped my morning coffee at six thirty sharp, I waited patiently as SNDK surged after the opening bell. Once it showed signs of stagnation, I made my exit and pocketed a +4.4% gain.
This is the perfect lead-in for…
Over the weekend, I was convinced I found a winner in Marvell Technology Inc (NASDAQ:MRVL) but the market had other plans Monday morning. MRVL’s pre-market bid price surged well above my desired entry point and refused to budge all day. Rather than chase momentum, I pivoted and grabbed Dick’s Sporting Goods (NYSE:DKS) and Broadcom Inc (NASDAQ:AVGO) instead.
Tuesday morning’s panic over global bond yields and oil prices sent the broader market over a cliff. I patiently monitored MRVL’s chart until the bleeding stopped, then deployed my allotted capital across two separate orders spaced an hour apart. My patience was rewarded with an average cost basis well below my original target.
I intended to hold MRVL until their August 27th earnings call, but the market forced my hand. During Wednesday’s pre-market portfolio review, MRVL skyrocketed on breaking news Google secured a massive custom AI chip and warrant deal with the company. I made a hasty exit and pocketed an unexpected +13.4% gain.
And now, another (hopefully) graceful exit…
Lately, headlines are screaming about an imminent autumn crash for the AI trade. Personally, I frequently trade SanDisk (NASDAQ:SNDK) because its price action mirrors Qualcomm’s (NASDAQ:QCOMM) legendary 1999 run — fueled by sky-high analyst targets and an army of momentum speculators.
But all macro cycles eventually end. It’s only a matter of time before these high-flying AI hardware plays fall out of favor.
And when they do? So what?
The market always moves on. Mega-cap indexes like the S&P 500 and the Nasdaq are just aggregate scores of thousands of daily cross-currents. Whether the broad market closes green or red, there will always be a list of winners and losers.
My job isn’t to marry the sector. It’s to trade the volatility.
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