Full-Time Trader Reveals Strategy for Maximizing Stock Returns
In the world of stock trading, Erik Smolinski has made a name for himself as a full-time trader with an impressive track record. Starting his trading journey in 2007 as a teenager, Smolinski, a veteran of the Marine Corps, has only experienced two negative years throughout his nearly two-decade career.
Impressive Trading Returns
Between 2018 and 2022, Smolinski achieved an average return of 24.6%. His performance peaked in 2023, where he reported triple-digit returns. For 2025, he anticipates a notable 79% return, placing him on a path to one of his strongest trading years.
Key Trading Strategies
Central to Smolinski’s success is his meticulous approach to trading. He emphasizes the importance of having a detailed trading plan and maintaining a comprehensive trading log. A vital component of his strategy is the use of after-action reviews (AARs).
Understanding After-Action Reviews
Smolinski conducts monthly AARs and dedicates up to two weeks for a comprehensive annual review. This practice allows him to assess what strategies are working and what needs adjustment. He notes that historical performance does not guarantee future results, making the AAR crucial for adapting to market changes.
Market Awareness and Strategy Adaptation
According to Smolinski, consistent research is essential. He recognizes that growth stocks historically outperformed large-cap stocks but emphasizes the necessity to reevaluate this perspective regularly. “If I simply rely on outdated beliefs, I risk underperforming,” he stated.
He employs multiple strategies and profit mechanisms tailored to various market conditions. This flexibility enables him to pivot when certain approaches no longer yield results. Smolinski likens his trading to running a business, noting, “Big businesses have quarterly earnings reports, similar to AARs in trading.”
Actionable Insights for Everyday Investors
Smolinski advises everyday investors to engage in their own AARs to avoid neglecting their portfolios. Regularly analyzing investments, at least quarterly or annually, is a best practice. He suggests setting a recurring calendar reminder on weekends for this purpose.
Performance Evaluation Tips
To begin an AAR, investors should compare their returns against major indices and ETFs such as:
- SPY (S&P 500 ETF)
- QQQ (NASDAQ-100 ETF)
- IWM (Russell 2000 ETF)
- TLT (20+ Year Treasury Bond ETF)
- GLD (Gold ETF)
This evaluation helps investors determine if their portfolio aligns with their goals. If a mutual fund or investment is underperforming, as Smolinski warns, it might be time to make a change.
By adopting structured reviews and adapting strategies, investors can work towards maximizing their stock returns, similar to the successful methods employed by Smolinski.
