01/07/2023
1H2023 has ended and this is our report card. One major thing that I have decided to do this year is to challenge myself. I have been self-learning options since mid-2021, and I have decided to give myself the goal of taking options trade (whenever applicable) for 2023.
Do note, my version of self-learn is investing >20 hours a week in literature, talking to fund managers, backtesting their trades, and asking tons and tons of questions until people got annoyed with me. For every trade idea, I spent close to 3 hours exploring every possible option structure to see which gives the best reward and optionality.
During my learning phase, I put in more than 2000 hours learning how to trade a new instrument. This is important to highlight because, at the end of the day, you will not be a profitable trader from spending 12 hours watching 1 youtube video and then start tackling the live market.
This is a Long/Short Equity portfolio that is mainly driven by options. Still, the majority of the trades are executable with stocks. A Long/Short portfolio is a strategy focused on alpha return by hedging beta. In layman's terms, the portfolio performance is not affected by market performance. We are not at the mercy of where the market is heading.
In 1H23, we returned 24% on our portfolio. We underperformed the Nasdaq. However, from a risk-adjusted perspective, we will still get a similar return if Nasdaq were to head down. If in the 2H, the market is stagnant or retraced, we will still be able to return another 20-25% (making it about 45-50% annual)
The edge is to always maintain a portfolio with a combination of long AND short positions to ensure the portfolio has a neutral beta. We identify short-term catalysts that are able to push the stock by 15-20% within 60 days. We will capture these asymmetrical profits while the trades that did not work out are contributing minimal loss due to the beta-hedged nature of our portfolio. This is an alpha return (an actual financial term).
You will be able to access our 1H23 portfolio and all of our closed positions on our Discord. The link will be provided below. These are positions that I shared with the Patreon subscribers BEFORE I enter them.
Currently, I have 3 mentees who I am mentoring 1-to-1 who have shown to have similar commitment and passion as myself. They are doing well so far and you may here from them at the end of 2023!
We will be opening registration for Batch 7 (August 2023) of our 3 Months Trading Course tomorrow. We are offering a one-time promotion for Batch 7 only. We are looking to open our pilot 1 Month option course in November 2023. This course will be priced at $1000. However, if you signed up for our 3 Months Trading Course (for August), you will get the options course for free. Detailed information will be shared tomorrow!
Do note, this is a 4-month commitment. Ensure you are able to commit. I hope you didn't think that you could be a profitable retail trader just by spending 48 hours on materials and PowerPoint. Imagine a business with unlimited profit scaling; how much effort do you think is required to pull it off successfully. The answer is, definitely way longer than 1 weekend of work.
Portfolio Link:
https://discordapp.com/channels/888229311360942130/888276368218017793/1124586160904208474
