Hey guys it's sasha, and today i am going to talk about something i haven't seen. Anybody else cover. I am going to tell you about an investing strategy that is very unconventional, but one that i use to boost my portfolio performance. I call it the jumping stock strategy and i'm going to explain exactly what the jumping stock strategy is and why it can be incredibly effective and at the end, i am going to share a little bonus tip for how this strategy can be really really effective.

If you tweak it and apply it in a particular way, alright, so what is this weird jumping stock strategy? Well, a stock share price generally moves for one of three major reasons. If you take a step back, the first is stock, specific news and information things like new product launches media coverage, important announcements, maybe they're, starting a new partnership. All that kind of thing some positive news comes out about a stock and its share price moves up. Then some negative bit of regulatory interference or something else like that happens, and the stock moves down.

The second broad category of reason why the share price moves is due to exogenous market factors, exogenous being. The fact is outside of a company's control, things that are affecting the share price, but the company can't do much about so either. The whole market is on the up, for example, because of macro economic reasons, maybe the jobs report that's come out is really good. This month or the fed is making positive announcements about treasuries or whatever, or it could be broad industry sentiment.

The government can be incentivizing a particular industry, or something like that. There can be reasons why a company is moving up and doing really well, even though there is no news emanating from the company itself, and the third reason that the share price moves is data and in the case of public companies, the vast majority of this data Comes in the form of quarterly results: every quarter. There is a big update on the company's performance, lots of numbers are published and these can adjust expectations of analysts up or down. So we've got three main categories of share price drivers, internal news, exogenous factors and quarterly updates, and here is something really interesting.

Different companies are affected very differently by these three different categories. Some companies, like tesla, are very much in the public domain. Elon musk has tens of millions of followers in social media tweets multiple times a day, and there is a huge devoted fan base who all discuss the stock. Internal company leaks are shared daily, multiple times throughout the day and there is a huge spotlight on the way that government and regulators are dealing with tesla.

So all of this is making the damn the share price dance massively down 10 percent for seemingly no apparent reason. One week, then, back up 20, the next week. I am exaggerating slightly here, but that is the sort of thing that happens. Exogenous market reasons and internal company updates make a huge difference on an ongoing basis.

Then quarterly results do come out and when they do, they tend to confirm the thesis of the bulls who invest in the stocks, so they're continuing to be happy. At the same time, it kind of confirms the bear theories as well with some different data points from the same exact report, but then there's other stocks, stocks where the company might also be big and might be doing exciting, interesting stuff. But the company is flying very much below the radar. Their bosses stay out of the limelight, they're, not a very popular investor pick and the company generally stays out of the media circus, and these companies can sometimes follow a very different pattern.

Their share price tends to stick around doing next to nothing. For weeks and months. Often these companies are in a sphere which isn't a retail can i every person is tending to buy that particular product type of sphere and that helps and i'm sort of staying in the shadows and then the quarterly results come out and bang suddenly analysts remember that This company exists and they go and look at what the data is showing, and this means that the whole sum of the movements that typically takes three months to happen and this distributive cost of three months for those companies happens in a very short space of time. So you get this weird effect that, although investing is a long-term process - and you know the right thing to do - is to invest for the long term, some stocks tend to jump up and down in very short time windows, rather than gradually moving upwards.

Let me show you some stocks that i am personally invested in that do this. First, let's look at amd. This is a company that makes computer chips and is one of my bigger holdings, and here is the chart of their share price over the last year. A year ago, the share price went up 31 in just over a month right after the q3 results were announced.

At that point, then the share price did nothing for three months and died 17. After the q4 results were announced in january, then there was a small fall after q1 results at the end of april, but we really had to wait six months for the next big move when the share price spiked by 31. Again in just one week after the q2, results were announced at the end of july, and the amazing thing is that these results are often not really showing anything particularly surprising or something that nobody expected. I made videos of beginning this year sharing my outlook on amd with models and numbers, and those quarterly results were pretty close to where i saw the company's performance going.

But, unlike other companies, i didn't get a gradual return on my investment. I just sat there getting nothing for months and then boom the results come out and i am up over 30 in just a few days. Two other companies in my portfolio that share this behavior are fiverr and palantir a slightly worse or slightly better than expected. Quarterly report for a company like this can easily send the price going up 20 or 30 percent or down, and the amazing thing for long-term investors is that nothing much really changes in terms of where the company is going or the long-term outlook.

In the vast majority of cases, but we still saw that huge drop on fiber share price in march and then again a massive drop in august, but here are two things that happen after one of these drastic fours. First, i do a complete reassessment of my target price for the company and in most cases, that assessment does not change a huge amount based off one quarterly update the market loves to completely overreact on relatively immaterial numbers that don't affect massively the long-term outlook and the Second thing that i love to do is to scoop up shares in those companies which have come down massively, but my target share price at the same time hasn't moved because i see a huge upside, but that's not what this video is about. I have other videos that i'm going to link in the description below where i talk about this bottom feeding strategy. The bit i want to talk about in this video is where the share price jumps up, because with companies that follow this pattern, both jumps up and jumps down can be amazing times to make money, because here's the thing if my projection for the stock remains unchanged And the price is now down by 30 compared to before the last set of results, and if my projection ends up being right, a big.

If i know then, eventually, the stock has to move upwards to make up for the drop, but also to make up for the gap between the target price that i've set and the current share price. If the projection that i have is beginning to look a lot like what the performance of the company is doing and with these stocks, that jump primarily happens on quarterly updates. That jump will often come in a few days after those results are published. So here's the trick, although i don't do short-term trading or swing trading or things like that, i do do a little redistribution either through investing, in particular things when i deposit money or just moving my numbers around a little in my portfolio, ahead of the quarterly results Season and generally speaking, the quarterly results are announced at the end of the month after the end of the quarter, uh give or take two weeks so for the third quarter, that's just finished in september.

Almost all the companies are going to be announcing the results in the second half of october and for the first two weeks of november there are some outliers, so do check ahead for the company that you are investing in uh when they do their updates. So last time out, i felt that fiverr got a ridiculous drop and, as per usual, the share price hasn't really done anything for three months. Since then, it's just sat flat. Palantir has been dancing up and down, but generally traded sideways for over a year since uh.

The q3 results came out last year and the numbers have been exploding, every single quarter, completely decimating all projections, and so, given that i know that this jumping is what happens and given. I know that these companies tend to get disproportionate moves after those numbers come out. I tend to wait my portfolio towards those jumpers before the quarterly update season and at the beginning of the video i said, i'd tell you a really epic bonus tip for how to make this strategy work really well, and here it is i'm going to share it, But in exchange you need to go and invest in the like button for the youtube algorithm. Investing in the like button is the best thing you can do even better than this strategy.

It is completely free, you don't have to put any money in and you get an infinite return on your investment in the form of free bonus tips. So, thank you so much for uh for doing that, and here is the tip different companies announce their results on different days during this quarterly update cycle, and you can look these up for the companies that you're invested in they get announced typically a few weeks in Advance but they're, usually roughly on the same days. Every quarter then check if you have an investment in a jumper that happens relatively early on during that season. If the company has lost a lot of share value in the last quarter, uh or maybe the one before, then then it might be a particularly interesting option or if that company's traded sideways for a long time, despite the numbers, beating all estimates and doing really well, You may have a reasonable expectation in that situation.

The share price could go and do a big jump upwards, and so what i do is i weight my investment slightly in favor of those early potential jumpers. Then, if that company does jump by 20 or 30 in a few days after they announce the results, i can go and redistribute, and i can also partially double down on the same strategy a few days later for the company that announces their results. At a later point, i'll take some of the money that i have sitting with that company and move it to the next potential jumper. Now, a few really critical, really important points to remember this strategy has its risks.

Jumpers do not always jump, or they might take an extra quarter or two to make the jump sometimes they'll jump down before they make a big jump up. This strategy can fail in your face and you definitely do not want to be putting large chunks of your portfolio in the strategy. This is not the roulette table in vegas, but as the quarterly result season approaches and i make investments uh over time or i redistribute my portfolio. I definitely do pay attention to this now.

Amd typically announces their results early on, usually on the last tuesday of the month after the quarter for which they do the results. So i think that they're going to be doing it on october, the 26th, so amd is not particularly likely to jump in this particular season. So maybe it's not the best example, because they already did jump last quarter, but my model still shows a significant upside on the stock. So if the quarterly results continue confirming that there is still a chance of another move upwards, maybe not quite as big.

Given my projections, i'd personally place the likelihood of a downwards jump for amd as being low, so my base expectation is that if the upward jump doesn't happen, i might see my shares just simply. Trade sideways fiverr and palantir typically announce their results. Two weeks later about 10 days into november, or a few days later than that, and they are both jumper candidates. For me, this quarter uh in particular, fiverr.

I think so, although i have a higher upside in my valuations for both fiverr and palantir, my waiting right now is actually skewed towards amd and i'm going to wait and see what their quarterly results look like. First, then, i have two weeks to collect any jump. If it were to happen and then i can go and rebalance towards the other stocks over the next two weeks to go and collect any potential jumps of there too. Now, as i mentioned, the strategy will not work every time for sure, but over long periods of time, because i do this every time it's been doing pretty well for me, and i thought that i'd share it with you as well, because you'll probably notice in some Of my other videos me applying this and you might be wondering why is he doing this if you found this useful, don't forget to invest in that like button for the youtube algorithm? Thank you so much for watching.

I really really appreciate it and, as always i'll see you guys later, you.