Chat with Traders Podcast - Episode 212: Christian Kulamagi

Introduction

• Host: Aaron Field
• Guest: Christian Kulamagi, Swedish swing trader
• Highlights of trading career:
  • Trading U.S. equity market full-time since 2011
  • Member of "eight figure club" - tens of millions in trading profits
  • Self-funded independent trader
• Christian views trading as a video game

Christian's Trading Journey

Beginnings

• Started investing in 2010, full-time trading in 2011
• Left degree in biomedical laboratory science to pursue trading
• Initial investment: $5,000 (blew up multiple accounts thereafter)

Transition to Swing Trading

• Began as a day trader, influenced by online community
• No initial method or system, learned through trials
• Shifted to swing trading in 2013 after realizing bigger moves took weeks/months
• Found swing trading more scalable and less stressful

Trading Strategy

Setup Discovery

• Influenced by a trader named Stockbee and book by William O'Neil
• Patterns in stocks are recurrent through history
• Built confidence through backtesting and creating a database of setups

Breakout Strategy Deep Dive

• Objective: Identify stocks that build patterns and buy at breakout point
• Patterns: Stocks move like stairs, leg up followed by consolidation
• Stock Selection: Strongest stocks, high momentum, fundamental angles
• Entry & Exit:
  • Buy at breakout point, sell into momentum burst or use trailing stops
  • Stops adjusted to moving averages (10-day or 20-day)

Risk Management

• Aggressive entries and exits
• Stops at low of the day, may adjust based on moving averages
• High failure rate on initial entries but large returns on successful trades

General Trading Insights

Swing Trading Challenges

• Broader market moves can affect positions
• Importance of buying during market corrections for better outcomes

Portfolio Management

• No strict limit on open positions but typically holds around 15-20
• Top performers can significantly drive overall returns

Personal Trading Challenges

• Overtrading and impatience with exits
• Struggles with following own rules on trailing stops

Scaling Trading

• Scales trading as account size grows
• Uses margin strategically, only in favorable conditions

Keys to Success

• Simplicity in strategy (focus on price and what's moving the stock)
• Avoid getting influenced by media and external opinions
• Importance of mastering setups and their variations
• Scaling trading to grow returns

Life Impact

• Christian's life hasn't changed drastically despite success
• More time for personal interests and hobbies

Final Thoughts

• Success in trading is rare due to wrong focus, lack of education, and not scaling trading
• Importance of thinking in percentage terms for risk management

Links

• Blog: chartsandstories.com
• Twitter: @thekulamagi
• Episode link: chatwithtraders.com/212