Reflections on My Best Trading Year
Lessons, Wins, and the Books That Shaped Me
Exams are finally behind me, and I’m about to catch a plane back home. I’m looking forward to spending the next two weeks with family and friends, mostly unplugged from the markets.
First, I want to express my heartfelt thanks to all of you who’ve subscribed. Just eight months ago, I wrote my very first post on Clark Street, unsure of what the reach might be. The feedback has been incredible, and I’m genuinely grateful.
Tada!
While some trades are still running, my current win ratio stands at 71.4%, a significant improvement over previous years. My biggest trade this year, in terms of allocation weight, was my long position in Solana, which closed with a 65.63% gain.
To put things into perspective: if you started with $50k, you would have had enough margin to trade a single lot in each of the products I’ve traded this year. By year’s end, that would translate into a total profit of $138,610, or a 277% YoY return. And that’s without reinvesting the principal or increasing leverage as PnL grew!
This year has been the most successful of my career in terms of PnL. I began my trading journey with intraday macro trading—focusing on understanding where markets would move today rather than predicting their direction tomorrow. Over time, I’ve realized that stepping back to focus on the bigger picture and allowing trade setups to fully materialize has significantly improved my:
Hit ratio
Risk-to-reward
Overall PnL
Chart 1.a: Performance Snapshot – 2024 Returns
Reflecting on Key Lessons from 2024:
1. Trading Less is More
This year, I took just 24 trades, compared to over 1,000 in 2023. Day trading, while thrilling, is exhausting and can border on obsession. The appeal lies not just in making money but in the immediate feedback loop—knowing whether you were right or wrong by the end of the day. It’s like a game, keeping traders glued to the screen.
It’s taken me nearly five years to recognize this, but overtrading clouded my judgment. Now, I prefer to let trades come to me, allow setups to develop, and give them the time they need to play out. This shift has been transformative.
2. Selecting the Optimal Asset to Execute My View
Instead of sticking to a single asset class—like U.S. stock indices, bonds, or FX—I now focus on identifying the best asset to express a trade idea. Don’t hesitate to try new products. Whether it’s an unfamiliar instrument or one you’ve never traded before, what matters is finding the most elegant and effective way to execute your idea.
I started with FX, then gradually expanded into U.S. bonds and indices. My time in London introduced me to European assets like BTPS, Bunds, and the DAX. I’ve traded wheat during the Ukraine-Russia conflict and explored yield curve and calendar spreads. This year, I learned to navigate rates markets such as SOFR, SONIA, and EURIBOR. Broadening my toolkit has been a game-changer.
3. Don’t Get Married to a Trade or Macro View—Stay Nimble
This year, I’ve been able to cut my losses early before they became damaging, whether due to technical signals or a shift in the framework that initially led me into the trade. My approach is straightforward: ticking off the boxes and constantly reassessing the risk-to-reward of holding the position.
A prime example was exiting the ASX 200 just two days before it completely collapsed. This kind of discipline has been key. I’m also proud of my ability to hold onto winners long enough to maximize gains while knowing when to “secure the bag” without letting greed take over.
Staying nimble has been equally crucial—quickly reversing positions when necessary has paid off significantly. For instance, I shifted from being short oil to long within a week, and from long Nasdaq to short Nasdaq when the market dictated it. As one of my mentors often says:
“It’s kill or be killed. Adapt, evolve, rethink, repeat.”
Chart 1.b: Cutting my loss early on the Australian index.
Chart 1.c: Exited my long ETH position after the FOMC meeting
Chart 1.d: Closed my long Nasdaq position and simultaneously entered a short on Nasdaq.
Books That Shaped My Trading Journey
With Christmas around the corner, and if you’re anything like me—frantically running around looking for last-minute gifts—I figured I’d do something useful (for once) and share some trading books that shaped my journey. Whether you want to sound smart at dinner or just distract yourself from the madness of the markets, these books have got you covered.
The Bible: My Introduction to Markets
Market Wizards by Jack D. Schwager
This was the first book that made me fall in love with the markets. It’s packed with some of the best trading stories out there.
Two of my favorite quotes:
"There is no single true path in trading. You find the methodology and risk management approach that fits your personality, and you stick with it."
"One of the most important lessons in trading is that the markets are never wrong; opinions often are."
Understanding the Fed
Fed 101: How the Federal Reserve Works and Why It Matters by Joseph Wang
A fantastic primer on the inner workings of the Federal Reserve, its plumbing, and how monetary policy affects financial markets.Lords of Easy Money: How the Federal Reserve Broke the American Economy by Christopher Leonard
An inside look at the Federal Reserve, detailing how consensus is built within the FOMC and what dissent truly means.
Crypto
Going Infinite: The Rise and Fall of a New Tycoon by Michael Lewis
The most captivating crypto story I’ve read. It chronicles the meteoric rise and dramatic fall of Sam Bankman-Fried. Truly sensational.
Trading Psychology
Alpha Trader by Brent Donnelly
This book is my go-to whenever I face a tough week in trading.
Favorite quote:
"Great traders are not great because of their profits; they are great because of their process."
Commodities and Oil
King of Oil: The Secret Lives of Marc Rich by Daniel Ammann
The story of perhaps the greatest oil and commodities trader in history. It’s an incredible read.
Macro
Big Debt Crises by Ray Dalio
I’ve leaned heavily on this book to analyze current developments, especially in China.Global Liquidity: How the Turn of the Monetary Cycle Impacts Financial Markets by Michael J. Howell
A deep dive into how monetary cycles impact global markets.
Anyways, wishing you all happy holidays. Last little favour, if you did enjoy my posts, please share with friends, family. You can also like and repost, it help get my Blog “in the algorithim”, or at least maybe.
Also, in case you’re wondering when I went short on Nasdaq or exited my crypto, it’s probably because you haven’t joined the Clark Street group chat yet! That’s where I post daily insights and share updates when I need to make decisions on the fly.
Until next time…
Sam
Please note that the content provided above is for informational purposes only and should not be considered financial advice. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.