Three years ago I published the Qullamaggie deep dive research bundle
@TheShortBear called it the best thing since Tim Grittanis work was shared
With the help of AI I've now made it into an interactive app
Let me know if you want a discount code 👇
Haha so wild that @veptrader lost $1.7M in KBIO
Check out his lastest video if you’re into small caps or even thinking about, to ubderstand the tail risk
So funny how @MartinShkreli made both Shark from SMB (cc: @TheOneLanceB) and @Qullamaggie pay their market tuition when he was CEO of KBIO
They both went on to become the most successful traders of our time and credits their losses on this trade for how they learned proper risk management
A 25% win rate doesn't mean we win every fourth trade.
Qullamaggie says he risks 0.2% to 0.5% on most trades. Most of us were taught 1%
I ran the same trades at each size, based on his actual long entries..
Biggest drawdown:
At 0.25%: 16%
At 0.5%: 30%
At 1%: 51%
But the returns at 1% are massive..
The most frequent advice we get on position sizing is a recipe for blowing up our accounts.
I looked at how Market Wizard Kristjan Qullamaggie actually sized his positions, to go from $9,000 to $105,000,000 in 10 years
💰Qullamaggie made about $1,000,000 on LVGO, April -July 2020
🎬LVGO is one of the most requested trade breakdowns
🫡In retrospect the 2020 covid bull run looks easy, but this just makes me respect Qullamaggie even more..
10 minute trade breakdown - how to make $1M 👇
688 traders entered the US Investing Championship (@USICOfficial) this year
Halfway through, 115 of them were reporting a profit. Why?
I might enter next year..
Very solid interview with @MaxGanik and @nieto
Many great segments.
I especially liked what he says about shorting liquid parabolics. Probably the biggest edge available in the market
youtu.be/uxnKnUv68-o?si=p3LH…
When did Qullamaggie start swing trading?
“Like, I was mostly a day trader until I hit like 300, 500k account size."
So I went through the P&L screens he posted on Twitter in 2014 to 2017 to get an approximation.
2014: 26% held overnight
2017: 56% held overnight
It was a smooth transition
How much is it realistic to capture of a stocks move?
Some examples:
NIO - up almost 200% from entry. Qullamaggie took about 40%
XPEV - up over 200% from his entry. He took about 50%
Have realistic expectations!
XPEV made @Qullamaggie over $600,000. He called it a perfect trade.
But he sold it too early. If he had followed his sell rules he would’ve made 2x+ more
Here is a play-by-play never seen before 👇
A winning trade almost never looks like the clean charts in the model book.
This is what it really looks like. Stopped out, bought back, stopped again, short, then long.
Qullamaggie on QS, start to finish
👇
Just like some people don’t have the height to play in the NBA, some people don’t have the amygdala to become successful traders..
Too bad the height requirements for NBA is much easier to observe than the amygdala requirements to become a profitable trader
Plus, brain’s Amygdala works differently in everyone, and has an impact on entering too soon or too late, or entering at all, all of which have a huge impact on the outcome
Surprisingly many of the Qullamaggie trades are about even split on whether people would take it or not.
Todays trade is on the easier side
app.qullamaggiedeepdive.com/…
Don’t think many are aware of this difference between 3 market legends:
Median daily range of the stocks they buy:
Minervini - 3.2%
Zanger - 4.4%
Qullamaggie - 6.5%
Median daily dollar volume of the stocks they buy:
Minervini - $120M
Qullamaggie - $269M
Zanger - $632M
What’s the lesson here?
We exploit what works, regardless of who offered it to us. We're in the business of changing our lives, not of liking everyone we learn from..
Qullamaggie got into trading because of @timothysykes and learned to trade parabolics from him
“If it hadn't been for Sykes, I probably wouldn't be here."
LOL I love that people still somehow dislike my teachings even though it’s made them into multimillionaire’s, sometimes even 8-9 figures as several of my students have now achieved…only in trading can you find such absolute weirdness (usually it’s with toxic leper short sellers who mange to find a way to be unhappy despite their wealth/know-how). The good news is I’m not in this to be liked and I will ALWAYS teach useful lessons that people NEED to learn, not what they want to learn.