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REDDIT

Am I doing this whole swing trade thing right? I have had some amazing success so far.

H
Sep 4, 2026 · 22:43

I basically focus on the Magnificent 7 stocks. In my opinion, these are some of the safest large-cap companies to invest in long term and are unlikely to ever completely disappear. I focus heavily on valuation, particularly which of the Mag 7 has the lowest P/E ratio, while also paying close attention to earnings and overall business performance.

If a company continues reporting strong earnings and fundamentals, but the stock is being held down by what I believe is mostly short-term or “fluff” news, I slowly start adding to my position. I never risk more than 25% of my net worth in a single position, and while a stock is significantly down, I will typically DCA by adding around 1–2% of my net worth per week.

A good example of this was Google about a year ago. The company was performing well, and I continued adding while the stock was down. That ended up generating some insane profits.

I also swing traded Microsoft multiple times this year. Several times, the stock moved from the mid-$300s into the mid-$400s. I would typically enter around $350–$370 and sell once it reached the $400s, locking in roughly 15–25% profits.

I used a similar strategy with Meta. I bought in the $500s and sold into rallies as the stock moved into the $600s.

Right now, I am still holding approximately 10% of my net worth in Meta. Two days ago, when it pumped to $618, I sold a position equal to approximately 15% of my net worth. My entry was around $535, so I locked in a solid profit. However, I still believe the stock may have more room to run, so I decided to keep a portion of my position.

My overall mindset is that if one of these companies crashes 50% or more, I am comfortable continuing to DCA into it over time, even for years if necessary, as long as the underlying business remains strong. Meta's major crash a few years ago is a perfect example of why I like this approach. Looking back, I wish I had been heavily invested during that period.