Introduction
I’m Jimmy, a self-taught trader who focuses on swing trading equities. I began in crypto around 2017 and transitioned to stocks in 2020. Early success gave way to a tough 30% drawdown, but I rebuilt through mentorship, a top-down relative strength framework, and volume profile-driven entries and exits.
Trader Talks QnA
What got you into trading?
I have a disabled brother, so I needed to be home to help my parents. I couldn’t work a normal job, so I explored online paths. I ran a couple of record labels and then got into trading because it’s something you can do by yourself at a computer.
When did you start and what did you trade first?
I started getting heavily into it in 2017, trading crypto like everyone at that time. Over time, I moved into equities because it’s a better world for me.
Was it easy at the beginning?
To be honest, it actually was. It was a really good few years. It got tricky closer to 2020 when I switched to equities.
What caused the early “edge” in crypto?
It was early. I felt there wasn’t much institutional demand, mostly regular people trading, so moves were more manageable. That’s how I got my account started.
When did you start equities and were you over PDT?
I started primarily trading equities in 2020 and I was over PDT. That’s when the grind began—earnings, fundamentals, reading institutions versus retail—it was a different world than crypto.
What happened out of the gate in 2020?
A massive drawdown. I had about a 30% account drawdown over roughly six months. I didn’t understand protecting capital well enough at first.
How did you turn it around?
I worked with mentors like Brian Shannon and spent time learning from Mark Minervini. I educated myself, focused on risk, position sizing, and clawed out over another six months.
What strategy helped you recover?
A top-down relative strength approach I built with my friend Alex: start with indexes, then sectors, then industry groups, and finally the strongest or weakest individual stocks. Go long the strong, short the weak. That changed my trading completely.
What technical tools do you use?
Mainly volume profile. I draw fixed volume profiles on swings, not just a full-year side profile. As a swing trader, it shows where volume sits within each oscillation, guiding my entries and exits.
Biggest hurdle in equities?
Earnings. I’ve been up 7–8% and then wake up down 20% the next day. I have to judge if I’m positioned to sit through earnings or exit beforehand. I don’t hedge with options; I use a rule of thumb—if I’m up around 10%, I’m more likely to hold through, but I still get hit sometimes.
Is holding through earnings worth it?
I’ve tried both—pre-earnings and post-earnings plays—and both can work. If I’m not up about 10% before earnings, I’m usually out and may re-enter after the reaction. But I prefer to be in before earnings because it can be the catalyst for a strong move.
Your biggest strength and weakness?
Strength: staying in the game and building unique systems—doing things differently to find edge, and backtesting. Weakness: sometimes holding positions too long.
Balancing trading with caregiving and life?
If you’re a caretaker, it can actually help—you can learn while working from home. It’s about balance and taking it day by day. I remind myself to give time to life too. Golf helps me get away from the screens and stay healthy mentally.
Do breaks from screens help performance?
Yes. Some of my best weeks were when I was detached—traveling, barely watching, just managing positions. Sitting all day often makes it worse, especially for swing trading.
Best resources for learning swing trading?
I’m a big fan of Gil Morales and Chris Kacher—their books are fantastic, like the O’Neil disciples work. Brian Shannon was a very good mentor through his service. They’re engaged with their communities and answer questions. You don’t need a 1-on-1 mentor hovering; community and self-learning work.
Mindset on losing and win rates?
You’re going to lose. You don’t need a 90% win rate; many great traders have 30% win rates. High win-rate approaches can still be fragile if one loss wipes gains. The longer you hold, the lower the win rate may be. Discipline matters more than the number itself.
If you could start over, what would you change?
Focus on relative strength and reduce the watchlist. Don’t chase thousands of setups. Build a small list of great names (or weak ones for shorts) and focus. That transformed my trading and many friends’ trading too.
How do you run your top-down process weekly?
I start with indexes (S&P, Dow, Russell, SPY), track and color-code relative movement. Then sectors via ETFs, then factor analysis (small/large/mid, growth/value). I look for rotation (e.g., small caps strengthening). Then drill into industry groups, then stocks within the strong (or weak) groups. I do this every weekend to build a trading list for the week. Sometimes nothing happens—probabilities change with macro events like the Fed.
How did you get comfortable with losses?
By losing and learning. I’m emotional and I feel losses. When it’s too much, I step back for a few days, reset, study, read, and come back fresh. If I feel ruffled and not myself, I step away, because otherwise I make bad decisions.
What happens if you don’t step away?
It spirals: deeper drawdown, panic, taking more size, trading illiquid names, shorting stretched stocks and getting squeezed—just trying to make it back. That gets you crushed. Stepping away prevents that spiral.
Best way to come back after a break?
Start smaller, look for traction. Don’t be scared too long—once I see a shift (a few up days), I ramp back to normal size. If I take a big loss right after, I size back down. It’s about how I feel and whether there’s traction in the market.
Is strategy or psychology more important?
I don’t argue it. I know traders who are purely fundamental, seasonal (like Larry Williams), or purely feel-based. If you have edge, it works. For me, I’m not a pure feel trader, but when I feel centered and see traction, I size up and perform better. Setups aren’t everything—news, fundamentals, or relative strength can add more edge than the obvious setup everyone sees.
Jimmy Trade Statistics
Here are summarized notes from my journey as a swing trader after transitioning from crypto to equities, highlighting risk lessons, process, and performance tendencies.
- Initial equities drawdown: approximately 30% over six months, recovered in the following six months.
- Primary approach: top-down relative strength with fixed volume profile for entries/exits.
- Earnings rule of thumb: more likely to hold if position is up ~10% before earnings; otherwise exit and reassess after.
- Weekly workflow: run full top-down analysis on weekends to build a focused watchlist.
Key Trading Insights from Jimmy
My main takeaways revolve around process, risk, and mindset. Swing trading rewards preparation, humility, and knowing when to detach.
- Top-down relative strength beats chasing endless setups.
- Use volume profile on swings to time entries and exits.
- Respect earnings risk; have clear pre-earnings profit thresholds.
- Step away when emotions rise; study and return with clarity.
Jimmy Trading Strategy
I rely on a disciplined swing trading process that filters from the broad market down to specific stocks, then times trades with structure from volume profile.
Top-Down Relative Strength Framework
Compare indexes (S&P, Dow, Russell), then sectors and factor ETFs (size, growth/value), then industry groups, then stocks. Go long leaders, short laggards. Rebuild lists weekly and adapt to rotation.
Swing Volume Profile Execution
Draw fixed volume profiles on swing legs to identify high-volume areas for entries/exits and manage risk around key nodes instead of relying on a generic right-side profile.
Jimmy Tools
I lean on a small set of tools and references to drive my trading business and continuous learning.
- Volume Profile tools for fixed swing profiles.
- Sector and Factor ETFs for top-down analysis.
- Books by Gil Morales and Chris Kacher (O’Neil disciples).
- Brian Shannon educational service and materials.
Common Trading Mistakes to Avoid
These are pitfalls I’ve experienced and corrected over time, especially during my early equities transition and drawdowns.
- Revenge trading after losses and increasing size without traction.
- Trading illiquid names or chasing stretched shorts and getting squeezed.
- Holding through earnings without a buffer or plan.
- Tracking too many tickers instead of a focused, high-quality list.
Conclusion
Swing trading success came from a focused process: top-down relative strength, volume profile timing, and emotional control. If this helped, drop a comment with your questions, and consider subscribing to stay updated on new insights and tools.