How I Turned £10k Into Consistent Profits Trading Just 3 Hours a Week
The Exact Rules I Follow to Scalp Tech Stocks Without Blowing Up My Account (Works Even If You Have a Day Job)
This is a practical guide to trading the way I actually do it. The aim is simple. Pick a handful of quality companies, buy dips during volatility, take profits on pops, and when a quick scalp stalls, let the trade become a short swing if the business is still solid. You are harvesting volatility while staying anchored to fundamentals.
This Is the approach I use, and my all time rate of return using this strategy is around 122.9% over the last year.
No magic. Just rules, repetition, and decent record keeping.
The whole idea in 60 seconds
The core concept is dead simple. You are going to maintain a watchlist of quality companies you actually understand, wait for them to pull back to logical levels, buy the fear, and sell into the relief bounce. When the market gives you a gift by dipping further, you have a plan to manage the position rather than panic selling at the bottom like everyone else.
Open a broker account. Trading 212 works. Any reputable broker is fine. Here’s my Trading 212 link get £100 worth of shares! If you use it! (this is not a sponsored post)
Build a rotating shortlist of 6 to 12 high quality companies across different sectors.
Only trade businesses you would hold for 6 months if needed. Quality matters more than quick exits.
Track market regime weekly. Only trade when conditions align with this strategy.
Use RSI for exhaustion, MACD for momentum, and market structure for targets.
Two modes. Scalp for fast moves. Convert to swing only with strict criteria met.
Take profits at resistance or when momentum fades. Default targets are guidelines, not rules.
Why this works (and when it spectacularly doesn’t)
You are combining mean reversion and catalysts. Quality names tend to trade in ranges between bigger trend legs. Earnings, policy shifts and news create the swings. If you keep your average cost low, take profits consistently, and avoid bag holding when the thesis breaks, you can compound steady gains.
The strategy exploits a simple market truth: stocks overshoot in both directions. Fear drives them below fair value, greed pushes them above. By focusing on quality companies with real businesses, you can trade these oscillations without worrying about going to zero. But this only works under specific conditions.
This strategy only works when:
VIX is between 15 and 35 (normal to spicy, but not apocalyptic)
SPY is above its 200-day moving average OR clearly bouncing from a major low
Your watchlist sectors show relative strength
You have time for the routine and haven’t rage-quit your trading journal
Stop trading entirely when:
VIX exceeds 40 (the “mom get the camera” levels of panic)
SPY breaks and stays below 200-day MA for 5 days
You have lost 10 percent of account value in a month
You find yourself googling “is Mercury in retrograde” to explain losses
Prerequisites
Before you donate money to more experienced traders, you need some basics in place. This isn’t about having a Bloomberg terminal or wearing a Patagonia vest. It’s about having enough capital to make the math work, enough time to execute properly, and enough emotional stability to follow your own rules when real money is on the line.
A funded broker account with at least $10,000 (smaller accounts pay too much in relative commissions)
The ability to check positions twice weekly without your boss noticing
A trading journal. Every trade logged, no exceptions. Yes, even that one
Maximum risk capital: 30 percent of liquid net worth (the rest stays in the boring index fund your dad recommended)
Step 1. Build your diversified shortlist
The watchlist is everything. You are not trying to trade the entire market or chase whatever is trending on social media. You want 8 to 10 names you know inside and out, spread across different sectors so they don’t all tank together when sentiment shifts. Think of it like fantasy football but with worse odds and real money.
The goal is finding companies with enough liquidity to trade easily, enough volatility to create opportunities, but enough quality that you won’t panic if you get stuck holding them. No penny stocks, no biotech lottery tickets waiting for FDA approval, no companies whose entire business model is “trust me bro.”
Screening criteria:
Market cap over $1 billion (penny stocks are not “opportunities,” they are lottery tickets)
Average daily dollar volume over $50 million
Beta between 0.8 and 2.0 (moves with market but not like a meme stock)
Has actual revenue (wild concept, I know)
Clear business model you can explain without using “disruption” or “paradigm shift”
Stock has traded publicly for at least 2 years (needs price history for levels)
Example watchlist that actually slaps:
NVDA - AI chips, the infrastructure everyone needs
RKLB - Rocket Lab, space logistics that actually launches
OKLO - Nuclear SMRs, because the AI centers need power
QBTS - D-Wave quantum, risky but defined ranges
PLTR - Data analytics that sounds like sci-fi but isn’t
IONQ - Quantum computing without the hype deaths
CRWD - Cybersecurity, because hackers don’t take days off
MSTR - Bitcoin proxy that trades like it’s possessed
Track correlation between your picks. If everything moves together, you are not diversified, you are just leveraged on vibes.
Step 2. The 6-month filter
Here’s where most traders mess up. They trade garbage companies because the chart looks good, then get stuck holding bags when the music stops. The 6-month filter is your safety net. Only trade stocks you would be genuinely comfortable owning for half a year based on the actual business, not the chart.
This doesn’t mean you plan to hold for 6 months. Most trades last days. But when a position goes against you, and it will, you need the psychological comfort of knowing the company isn’t going bankrupt next week. This prevents panic selling at the worst possible moment.
Automatic disqualifiers:
Debt/equity ratio over 2.0 (unless you are trading banks, which... why?)
Revenue declining while CEO tweets increased (red flag parade)
Management selling shares like they know something you don’t (they do)
Under SEC investigation (self-explanatory)
More than 60 percent below 52-week high (it’s not a dip, it’s a cliff dive)
Step 3. Market regime filter
The market environment determines everything. The same setup that prints money in a bull market will destroy your account in a bear market. Most traders ignore this, which is why most traders lose money. You need to read the room before you start dancing.
Every Sunday night, spend 15 minutes assessing where we are in the cycle. Not to predict the future, but to understand the current playing field. Are we in easy mode where every dip gets bought? Are we in hard mode where every rip gets sold? Or are we in that choppy middle ground where nothing works except patience?
Check these every Sunday night like a responsible adult:
SPY position relative to 20, 50, 200-day MAs
VIX level and trend (the market’s anxiety meter)
Dollar index direction (strong dollar = risk-off usually)
10-year Treasury yield movement (the boomer scoreboard)
Your sector performance vs SPY
Green light regime (full degen— I mean, full position sizes):
SPY above 50-day MA
VIX between 15 and 25
Your sectors outperforming SPY
Reddit not calling for economic collapse
Yellow light regime (half portions, like you are on a diet):
SPY between 50 and 200-day MA
VIX between 25 and 35
Mixed signals everywhere
Your group chat is 50/50 bulls and bears
Red light regime (close the laptop, touch grass):
SPY below 200-day MA
VIX above 35
Every chart looks like a ski slope
Your uncle who never invests is asking if he should “buy the dip”
Step 4. Entry signals with context
Entries are where fortunes are made or lost. Good entries let you be wrong and still break even. Bad entries mean you need to be perfect just to survive. The setups below are not suggestions, they are requirements. If the setup isn’t clean, don’t trade. There will be another one tomorrow.
The primary setup is your bread and butter, working about 60 percent of the time in the right market conditions. The secondary setup is for special situations like earnings reactions where the market overreacts to decent news. Never force a trade that doesn’t meet these criteria. Your job is to wait for fat pitches, not swing at everything.
Primary setup (the bread and butter):
Stock pulls back to rising 50-day MA
Daily RSI between 30 and 35 (oversold but not broken)
Hourly RSI under 30 (the intraday panic)
MACD histogram shortening (momentum slowing)
No company-specific news driving the pullback
Twitter isn’t screaming about bankruptcy
Secondary setup (post-earnings gift):
Stock gaps down 5 to 10 percent on earnings
Actually beat estimates but guided conservatively
Daily RSI under 40
Previous support within 2 percent
Analysts scrambling to adjust price targets
Never enter when:
Day before Fed announcement (Jerome Powell can ruin your day)
Day before company earnings (IV crush is real)
Elon just tweeted about the company
The stock is trending on social media for bad reasons
Your gut says no (seriously, listen to it)
Step 5. Exit signals that actually work
Exits are harder than entries because greed and fear cloud judgment. You need mechanical rules that force you to act. The market doesn’t care that you “feel” like it might go higher. When the exit signal fires, you exit. Period.
The biggest mistake traders make is turning winners into losers by overstaying. Your goal is not to catch every penny of the move. Your goal is to consistently capture the meat of the move and get out before it reverses. Leave some money for the next person.
Take profits when ANY of these trigger:
Stock hits clear resistance (respect the ceiling)
Daily RSI exceeds 65 (overbought is overbought)
Gain exceeds 2x ATR from entry
The pumpers arrive in your timeline
You catch yourself thinking “maybe I’ll hold for more”
Cut losses when:
Stock closes below your stop (not a wick, a close)
CEO does surprise TV appearance looking stressed
Sector breaks down technically
Position down 5 percent AND market is weak
You are starting to hope rather than plan
Step 6. Two modes with strict conversion rules
Most traders fail because they treat every trade the same. In reality, you need two distinct approaches: scalp mode for quick hits when momentum is on your side, and swing mode for working your way out of positions that start poorly but maintain valid setups. The key is having strict rules about when and how to convert between modes.
A) Scalp Mode (the quick hit)
This is your default mode. Get in, catch a quick move, get out. No drama, no bagholding, no “diamond hands” nonsense. If it works, great. If it doesn’t, small loss and move on.
Initial position: 2 percent of account
Target: Nearest resistance or 2x daily ATR
Stop: 1x daily ATR or previous low
Time limit: 3 trading days max
No adds, no exceptions, no “but this time...”
B) Swing Mode (the recovery mission)
Sometimes good setups need more time. But you can’t convert every losing trade into a swing just to avoid taking the L. Specific conditions must be met, and even then, you are on a strict timeline.
Convert to swing ONLY when:
Stock bounces from your first add level
No company-specific bad news
Sector still showing strength
Market regime still green or yellow
You are not already babysitting 3 other swings
Swing rules:
Add at entry minus 3 percent (another 1 percent of account)
Second add at entry minus 6 percent (final 0.5 percent)
Maximum position: 3.5 percent of account
Target: Next major resistance or 10 percent
Time stop: 10 trading days (not negotiations, 10 days)
Hard stop: 8 percent below average cost
Step 7. Position sizing that prevents account deletion
Position sizing is the difference between surviving long enough to get good and joining the 90 percent who blow up in year one. It’s not sexy, but neither is explaining to your partner why the vacation fund is gone. The math here is designed to let you be wrong multiple times without destroying your account.
The base sizing assumes everything is normal. The drawdown adjustments force you to trade smaller when things aren’t going well, which is exactly when your judgment is worst. This isn’t punishment, it’s protection from yourself.
Base sizing (account at highs, feeling good):
Scalp: 2 percent
First swing add: 1 percent
Second swing add: 0.5 percent
Maximum total: 3.5 percent
Drawdown adjustments (humble mode activated):
Down 5 percent from peak: Reduce all sizes by 25 percent
Down 10 percent from peak: Reduce all sizes by 50 percent
Down 15 percent from peak: Stop trading, watch YouTube tutorials
Down 20 percent from peak: Full stop, maybe paper trade for a month
Correlation limits:
Maximum 15 percent in same sector (yes, even if AI is “the future”)
Maximum 25 percent in correlated positions
Minimum 40 percent cash in yellow regime
Minimum 70 percent cash in red regime
100 percent cash if you are tilted
Step 8. The routine that separates winners from donators
Trading without a routine is like going to the gym whenever you “feel like it.” You will do it for two weeks then quit. The routine below takes less than 3 hours per week total, but it’s the consistency that creates the edge. Set phone reminders if you have to.
Sunday night (30 minutes with coffee or something stronger):
Review market regime filters
Check earnings calendar for your watchlist
Update support/resistance levels
Calculate position sizes based on current account value
Set alerts so you don’t have to stare at charts all day
Wednesday night (20 minutes):
Review open positions against exit rules
Check for regime changes
Update stops and targets
Note any positions approaching time limits
Delete any revenge trade ideas from your notes
Daily (5 minutes at close):
Log any trades taken (honestly)
Check tomorrow’s economic calendar
Verify stops are actually placed (not just mental stops)
Quick review of sector performance
Close the laptop before you overtrade
Monthly (2 hours of brutal honesty):
Full trade review with statistics
Calculate actual expectancy (prepare for disappointment)
Review correlation of losses (spoiler: they all happened at once)
Adjust watchlist if needed
Mandatory break if monthly loss exceeds 5 percent
The math that keeps you honest
Numbers don’t lie, but traders do. Especially to themselves. Tracking these metrics forces you to confront reality instead of living in the fantasy where all your losses were “almost winners.” Without accurate tracking, you are just gambling with extra steps.
Required tracking (your future self will thank you):
Entry price, exit price, position size
Entry date, exit date, holding period
Setup type (primary, secondary, FOMO, revenge)
Market regime at entry
Reason for exit (target, stop, time, panic)
Fees paid to make your broker rich
Estimated tax liability (the IRS remembers)
Key metrics to calculate monthly:
Win rate by setup type
Average win/loss by setup type
Largest drawdown from peak (your pain tolerance test)
Correlation of losses (probably all Tuesdays)
Actual return after all costs
Minimum viable stats to not go broke:
45 percent win rate
2:1 average win to loss ratio
Less than 10 percent peak drawdown
Positive expectancy after costs
Fewer than 3 rage trades per month
Worked example: An actual RKLB trade
Let me walk you through a real trade from scan to exit, including all the messy middle parts people usually leave out. This was a textbook setup that actually worked, which happens about half the time if you’re doing it right.
Sunday night scan:
Market regime: Green (SPY above all MAs, VIX at 19)
RKLB showing relative strength in space sector
Support at $20 (recent breakout level), resistance at $23 (previous high)
Upcoming catalyst: Launch scheduled in 2 weeks
Tuesday trigger:
RKLB pulls back to $20.50 on SPY weakness, no company news
Daily RSI hits 34, hourly RSI at 29
Space sector (LUNR, ASTS) still strong
Entry triggered at $20.50
Position sizing:
Account value: $50,000
2 percent position = $1,000
Shares = 48 (keeping it simple)
Trade management:
Stop at $19.50 (below support and round number)
Target at $22.50 (resistance with room for slippage)
Wednesday: RKLB bounces to $21
Thursday: Continues to $21.75, daily RSI hits 58
Friday morning: Gaps up to $22.30 on launch success announcement
Exit at $22.45 on approach to resistance
Results:
Gross gain: 9.5 percent in 3 days
Commission: $2 round trip
Net gain: $93 on $984 position = 9.4 percent
Tax liability (35 percent): $32.55
Actual kept profit: $60.45 (6.1 percent)
Feeling: Slightly smug, already looking for next setup
Worked example 2: When OKLO goes nuclear (not in the good way)
Not every trade works. Here’s one that went wrong fast, but proper position sizing kept it from ruining the month. This is what risk management actually looks like in practice.
The setup that looked perfect:
OKLO pulling back to $8.50 support
SMR sector hot, recent DOE announcements
Daily RSI at 31, technically oversold
Entry at $8.50
What actually happened:
Filled at $8.50
Next day: Short report drops questioning their timeline
Stock gaps down to $7.80
Stop at $8.00 gets skipped entirely
Market exit at $7.75
Damage report:
Loss: 8.8 percent on position
Account impact: 0.18 percent (sizing saved you)
Lesson: Stops don’t always stop where you want
Recovery: Made it back on NVDA two weeks later
Common pitfalls and solutions
After hundreds of trades, you’ll notice patterns in your failures. Here are the most common ways traders sabotage themselves and how to stop doing it. Yes, you will still do all of these at least once. Consider it tuition.
Problem: Converting every loss to a swing because “it has to bounce” Solution: Track swing conversion success rate. If below 60 percent profitable, stop lying to yourself.
Problem: Stops getting hunted right before the bounce Solution: Use closes not wicks. Place stops at weird numbers like $48.73 not $49.
Problem: Overtrading because you are bored Solution: Get a hobby. Minimum 2 days between positions. Maximum 3 positions total.
Problem: Revenge trading after losses Solution: 24-hour timeout after any loss over 3 percent. Go outside. Touch grass. Pet a dog.
Problem: FOMO after watching something run without you Solution: There are 250 trading days per year. You missed one move. You will survive.
When to stop completely
Let’s be real about when this isn’t working. The market is very good at taking money from people who can’t admit they’re wrong. Here are the non-negotiable quit signals. If you hit any of these, stop immediately and reassess whether trading is for you.
Real talk about failure points:
Three losing months in a row (the market is telling you something)
Drawdown exceeds 20 percent (preservation mode, not hero mode)
Win rate drops below 40 percent (your edge is gone)
You start hiding the app from your partner
You check futures at 3am
You consider using margin to “make it back quickly”
Your friends stage an intervention
This is not investing. This is active trading with significant risk of loss. Most who try will lose money even with perfect rules because execution under stress is harder than staying off your phone during a work meeting.
Taxes and other fun surprises
Nobody talks about this at parties because it’s depressing, but taxes and fees will eat 30 to 50 percent of your gross profits. That sick gain you screenshot for the group chat? The taxman wants his cut, and your broker already took theirs.
The costs nobody talks about at parties:
Commission: 0.2 percent round trip
Slippage: 0.1 percent (more in pre-market)
Spread: 0.1 percent average
Short-term gains tax: 25 to 40 percent (depends how much you already make)
State tax: 0 to 13 percent (looking at you, California)
Total friction: 30 to 50 percent of gross profits
This means:
Your sick 10 percent gain becomes 5 to 7 percent
That 20 percent banger nets you 10 to 14 percent
Breaking even after costs requires actual skill, not just luck
Tax efficiency tips that won’t make you popular at parties:
Hold winners past 1 year when possible (long-term gains rate)
Harvest losses in December like a responsible adult
Consider tax-advantaged accounts for trading
Keep records like the IRS is watching (they are)
Reality check
This is a side hustle that demands main job attention. Successful execution requires:
5 to 10 hours weekly (minimum)
Emotional discipline of a meditation teacher
Acceptance that losses are just tuition
Continuous process refinement (fancy words for “learning from mistakes”)
Realistic profit expectations (10 to 20 percent annually after costs is crushing it)
The market is not your friend. It doesn’t care about your rent, your wedding, or your really good feeling about quantum computing. Your edge comes from playing favorable situations repeatedly with consistent sizing while avoiding the account nukes that create new members of r/wallstreetbets loss porn.
Start with minimum size. Track everything. Be willing to stop when your spreadsheet says you suck at this. Most importantly, never trade the money earmarked for actual life expenses.
The simplicity is the point, but simple doesn’t mean easy. It’s like knowing that eating less and moving more causes weight loss. Everyone knows the rules. Almost nobody executes them when the group chat is screaming about the next big move and your position is down 4 percent.
Good luck out there. You’ll need discipline more than luck, but a little luck never hurt anyone.