XPLOSIV TRADES

The guiding principle should generally be extreme patience and ruthless selectivity. Capital can be treated as a precious resource that, in my view, should be preserved at almost any cost until, in my always fallible judgment, what appears to be a truly extraordinary short-term opportunity presents itself in an individual stock. The portfolio should therefore generally remain in cash (or ultra-short treasury ETFs) most of the time, often for weeks or months, with exposure typically refused whenever conditions appear only average. Very short-term swings (ranging from hours to a few days) may be considered only when powerful technical structure, a clear fundamental catalyst, ice-cold or overly pessimistic market sentiment, exhaustive real-time monitoring of news and headlines, and a sudden positive shift in order-flow or narrative reversal seem to converge into what looks like a highly asymmetric explosion capable of multiplying risked capital several times in a short period. Entry should only occur if a strict explosivity checklist (encompassing technical, fundamental, sentiment, and news-flow elements) is fully satisfied in my opinion; if even one element appears missing, no action would generally be taken. When everything seems to align perfectly, in principle, 50–100% of available cash may be deployed aggressively in one name, with tight mechanical stops. Activity should typically be minimal — usually fewer than ten trades per year — and long periods of inactivity can be gladly accepted in order to maintain calm and keep capital fully ready.