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Trading One Stock To Make Money - YouTube
Channel: Humbled Trader
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can you get rich from trading or
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investing in only one stock well my
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entire account was all in on tesla stock
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like so so yes i was rich as
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then this happened
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yeah true story i was a millionaire
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until elon tweeted i survived elon's
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tweet and all i got was this lousy mug
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[Music]
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all jokes aside profiting from investing
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in only one stock this is really against
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the traditional investing tips from
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legendary investors like warren buffett
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however we have seen individual
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investors putting all their money into
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one particular stock and saw some pretty
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outrageous returns remember the recent
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wall street beds movement in 2021
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remember that many retail investors
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stand out as gamestop and amc stocks go
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from double digits to rallying thousands
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of percent this is almost as if you went
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to sleep on earth and woke up on the
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moon today we're going to explore this
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idea and answer if it's possible to make
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a living or get rich trading or
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investing in just one stock and if yes
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what's the best way for us to do so
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actually just let me answer this
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question for you right now yes it's
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possible to get rich by just destroying
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that like button just do it and you'll
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wake up rich on the moon tomorrow and
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hopefully elon will never tweet again
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let's start approaching this topic from
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an investment standpoint shall we be all
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into one stock and cross our fingers
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that will eventually get rich
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when investing long term we often hear
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this phrase diversification
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make sure you diversify your portfolio
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so you don't put all of your eggs in one
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basket because if you do so guess what
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happens when the basket breaks that's
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right you have scrambled eggs but not
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the delicious kind from ihop but the
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greasy powdery kind from the high school
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cafeteria there are actually many valid
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reasons to diversify your
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diversification in investing means
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having your capital allocated into
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different asset classes such as stocks
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real estate cryptos or bonds and in
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different industries such as tech
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consumer stables and financials imagine
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if you were only invested in a single
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stock in a single sector in tech during
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a 2000.com hype well then you probably
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weren't broke when the bubble bursted
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many of the technology stocks went
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plummeting down some did survive however
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they are now the tech giants in today's
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technology sector such as apple amazon
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and google it's because of investment
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bubbles going burst like this
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conventional wisdom tells us to
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diversify our portfolio so that just in
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case a stock or a single sector crashes
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we just lose some but not all of our
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hard-earned money for most investors the
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easiest way to achieve diversification
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is to invest in index funds essentially
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you could own baskets of that say 500
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different companies in one stock for
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example if you own the stock voo
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vanguard 500 index fund etf you are
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investing in 500 of the biggest
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companies in the united states
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basically this is a fund that tracks the
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s p 500 within this fund you are
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diversified in different industries such
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as technology health care consumer
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discretionary and many many more so now
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that we know for most investors
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diversification is a good idea since it
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limits the risk of losing a significant
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amount of our portfolio this does beg
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the question can you get rich from
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buying just one stock i mean do we have
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to diversify all of our money that much
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after all we have heard about over
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diversification leads to average returns
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and billionaire investor mark cuban once
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said specification that's for idiots
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right because you
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i know right he's only worth 4.5 billion
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dollars but is he on to something what
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if you had just put one thousand dollars
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into amazon in october 2000 when it was
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trading for only six dollars a share
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now you would have around five hundred
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thousand dollars and you'll also be that
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annoying person at the parties the same
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is true for a lot of popular stocks such
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as tesla apple even gamestop and moderna
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my favorite stock of all time and my
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favorite vaccine to take
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but like i previously mentioned in a
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video revealing my investments i do
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invest heavily into one particular
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sector which is real estate and if you
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look at the percentage allocation my
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money is actually not that evenly spread
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out or diversified into different asset
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classes as for stock market investing
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and much more diversified present day
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with most of the capital in index funds
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for the s p 500 tech financial and
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energy dividend etfs in canada however
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the original capital i built up for this
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stock investment and also where i had
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the funding for my day trading account
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were not from these diversified stock
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investments a substantial portion of
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these funds were in fact from the profit
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as a result of investing in highly
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concentrated individual stocks since
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2013 and 2014.
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like i mentioned before in this video
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before i quit my job to become a
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full-time day trader i was actually a
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vfx artist working in the film industry
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i have a bachelor's degree in film and
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computer graphics and it's from my four
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years of college that became very
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familiar with all the softwares the
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booming film and gaming industry heavily
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relies on yes i'm talking about nvidia
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chips to render out all the images you
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guys see on the screens as well to
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produce a real time rendering in gaming
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the high quality of 3d rendering you see
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today would not have been possible
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without a technological breakthrough by
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companies such as nvidia autodesk and
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adobe and it is specifically these three
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stocks and them only that i started my
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investing journey and they paved the
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foundation for me in my early 20s i
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didn't have much to start as a broke
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college student but i started with just
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100 a month and slowly increased to a
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couple hundred per month to a couple
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thousand i was buying nvidia at the
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split adjusted price today from four
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dollars to twelve dollars adobe from
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sixty dollars to seventy dollars and
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autodesk around 50
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i have since then sold all these
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individual investments and started
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diversifying these profits into real
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estate and index funds but without these
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initially super concentrated investment
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profit i would have significantly less
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today now looking back to more than
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eight years ago i did not invest in
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nvidia autodesk and adobe thinking that
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i would just get rich quick from these
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growth stocks i simply invested in them
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because i use their products every
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single day and i truly understand what
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they are capable of and how the demand
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has grown so substantially just during
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the four years when i was in college
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okay yes i know i did not exactly invest
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in just one stock and got rich from it
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but i did invest heavily into a single
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industry computer graphics technology
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because that's why i understood well the
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most recent time i invested heavily in a
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single stock again was in 2019 namely
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tesla from the 75
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split adjusted price and now it's the
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biggest weight in my individual stock
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holdings along with apple stock so
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apparently you could get rich from just
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one stock okay maybe i didn't get rich
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but i did get substantial financial net
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worth boost from just one stock however
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i'm not saying everyone should go out
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there and put all their money into one
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specific stock or a single sector like i
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did if you are an expert at an area you
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see the growth and use of products from
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a few very specific companies like i did
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there might be your opportunity right
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there to achieve above average returns
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however i do think it's a good idea to
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diversify eventually once you've seen
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these concentrated investments go
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hundreds or thousands of percent to the
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moon that's the reason i move these
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profits into index funds real estate and
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for day trading on the other hand if you
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don't think you are an expert in any
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highly specialized and growing industry
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i would not recommend investing in just
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a single stock or a single sector and no
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reading other people's research and
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analysis online on wall street bet
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reddit twitter youtube or tick tock does
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not make you an expert that might have
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worked in 2021 but it's probably not
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sustainable long term the same can be
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true with trading a single stock when we
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think about the world's best athletes
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musicians ballerinas surgeons they
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thrived because they have spent their 10
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000 hours on repetition and doing the
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same practice every single day over and
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over again until they find perfection
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the same analogy can be made with day
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trading your repetition and experience
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in trading one stock can make you a
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master of the stock's price action and
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lead you to greater success over time
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you will have familiarized with the
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stock's prior support and resistance
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levels you will know how its price
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action reacts to various volume key
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levels and event catalysts and that's
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the reason many times i will have one or
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two stocks i love to trade almost every
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single day for a few months that was the
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case for amc in the summer of 2021
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i loved longing and shorting the stock
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to the moon and back down to earth and
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get the same thing while i'm trading
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mvacs and mrna in 2021 as well until my
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journal stock burned me alive when i was
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loneliness turd so now i'm shooting
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every single bounce to the ground and
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currently in 2022 in a downtrending
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environment my go-to stocks to trade
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every single day are amd and nvidia i
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trade both of these names long on the
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market rally days and when the market is
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down or going red i will shoot them and
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hop on the ride to no bound city most
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new traders will find the most success
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focusing on just a small piece of the
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puzzle and repeating that over and over
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again that goes for practicing the same
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setups and practicing on the same stocks
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i'm not saying this for you to trade
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exactly the same stocks as i do but
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rather to dig into your past data and
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find maybe one or two stocks that you
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have a history of success with you need
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to be able to clearly read the stock's
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price action and be familiar with the
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amount of risk the price and range
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requires and as always risk management
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should always be your priority just
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remember that time and experience are
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going to be your best teachers in the
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stock market hopefully you guys enjoy
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this video and the bad jokes if you're
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interested in learning more of my risk
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management strategies then feel free to
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check out the humble trader community on
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my website thank you guys so much for
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watching as always i'm the humble trader
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and i'll see you guys next time
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[Music]
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[Applause]
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you
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