Day trading is intense, frequent, and requires strict discipline. Most traders operate with an accuracy between 30-60%, making risk management—through position sizing and stop losses—critical. But here’s the key: Day trading is not meant for your entire portfolio.

On the other end of the spectrum, investing is a long-term game. With the right investments, accuracy can approach 100%, meaning near-zero risk over time. The biggest challenge? Finding the right investments to hold for the long haul.
The reality? The average investor holds stocks for just six months—they think they’re investing, but in reality, they’re trading. With this approach, accuracy still sits between 30-60%, and returns are often below the S&P 500.

A balanced approach can be powerful. With the 40/40 version of the Stars model, 40% invested in TQQQ has historically produced returns of nearly 30% per year, while the remaining 60% allows for stock selection.

Trading and investing together provide a real test of strategy. If you do both, you’ll see just how strong the Stars model really is. 💫