“You actually can be wrong quite a lot and still make money.”
That’s one unexpected insight from Ivailo Chaushev, a day trader with 16 years of market experience who was inspired as a teenager watching his father trade. Chaushev explains he hasn’t built his returns through exotic options plays or by chasing fleeting meme stock frenzy.
He says his gains come from closely observing the market and consistently investing in well-known stocks like Nvidia and funds tracking major U.S. indexes and sectors. Themoneytimes reviewed screenshots of his brokerage account to confirm the performance.
He recalls his early trading days were consumed by quotes, charts, and screens, but his approach is more balanced now, and he’s gathered valuable lessons along the way.
Here are his top recommendations for traders navigating today’s shifting stock market.
Don’t over-leverage
The allure of amplifying profits through leverage can be strong, but Chaushev emphasizes it’s a major risk traders must fully grasp. He points out that over-leveraging is the most frequent error he sees among newcomers. When paired with overconfidence, the outcome can be devastating.
“These two are connected,” he said. “When traders become overconfident, they use too much leverage and they blow up. Above all, be humble, because if you’re not, the market tends to find a way to humble you very quickly.”
Avoid meme stocks
Since the GameStop frenzy of 2021, meme stock hype has come and gone, but it remains a tempting lure with promises of rapid, staggering returns. The GameStop squeeze ushered in a new era for retail traders, drawing many into chasing gains in shares of struggling companies like AMC Entertainment and Bed Bath & Beyond.
Chaushev warns that the extreme volatility of meme stocks makes them a serious hazard for most traders, with speculative gains that often vanish quickly, leaving many holding the bag.
“Meme stocks are very difficult to trade, and I do not recommend anyone do it,” he noted. “When it comes to social media, people need to do their research.”
He also advises traders to steer clear of stocks constantly hyped by financial influencers, noting that by the time traders hear about a rising meme stock, it’s often too late to profit.
Don’t buy the “get rich quick” talk
Chaushev also pushes back on the popular notion that day trading is a fast path to wealth. In reality, trading is tough, and most traders lose money for various reasons.
“It’s not a fast process. You will not turn $1,000 into a couple of million in three months. You need discipline and you develop discipline by just being in the market for a long time.”
While he acknowledges some traders have made quick profits, Chaushev says lucky timing is the primary factor in those cases. He urges retail investors to instead commit to an investing strategy for years—and be prepared to possibly lose money along the way—before gains truly compound.