90% of Profits from 10% of Trades $VSCO $INTC

Was having lunch yesterday with one of my guys from the venture capital world.

Got talking about pareto's principle.

Often called "law of the vital few", which suggests only focusing on the most impactful actions.

In the VC world, 5% of startup investments create 95%+ of returns.

Trading is the exact same way.

Roughly 90% of profits are generated by 10% of trades.

Everyone uses the word "sniper" and sh*t like that...but it's true...sit & wait until the huge opportunity inevitably presents itself, then swing big like druckenmiller.

I don't like trading. I like making money. Big difference.

I don't need to spam tickers, take a thousand trades a year, and be mentally exhausted weekly.

Most of my yearly returns come from 2-3 trades going 100%+...(it's been $Victoria's Secret & Co(VSCO)$ $Intel(INTC)$ recently).

Just had a good convo with @feroceresearch about the importance of only getting involved in the highest quality ideas.

Grasping which ideas are "the highest quality", you gotta have a well-rounded sense of markets.

Technical, fundamental, and observational investing.

Technical:

> read charts

> price action

> relative strength

> volume

> leaders & laggards

> support & resistance

etc

Fundamentals:

> business strength

> growth metrics

> valuation

> management & execution

> industry + macro tailwinds

Observational:

> catalysts

> event driven

> stories + narrative

> consumer behaviors

> cultural relevance

> layoffs, re-orgs, hiring

> insider activity

I use X as my persona research journal, but for you guys - I'm going to get much more intentional about sharing exactly what I'm positioned in, what themes I like next, and how I'm approaching current swing trades in terms of risk, trade reviews, and teaching.

Hope you guys are cool with this...will be sharing my current portfolio tomorrow.

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