Portfolio Administration Guidelines Created An Investing Champion


This week, George Tkaczuk is part of the show on the Investing with IBD podcast. Tkaczuk is a portfolio manager at RCM Wealth Advisors and the 2020 US Investing Championship winner in the $ 1 million money managers division. He shares how a chance encounter with Investor’s Business Daily gave him the portfolio management tools for investment success.

Audio version of the podcast episode

Video version of the podcast episode


The rules of portfolio management made him a US investment champion

Tkaczuk didn’t start out in finance. He was in Las Vegas with a Worker Compensation job when a colleague interested him in stocks. After sending Investor’s Business Daily for a free trial, he was delighted.

Still, he saw many boom and bust cycles in his portfolio. Until he discovered a great secret at IBD founder William J. O’Neil’s seminars. George learned to use consistent portfolio management rules instead of using emotions and feelings.

After Tkaczuk saw strong profits evaporate into big losses in the 1990s, Tkaczuk found the portfolio management rule that made the biggest difference in his investment success. Cut losses quickly.

He also got better at his chart reading skills, position sizing rules, and market analysis skills. The perseverance has paid off. He got a job as a broker and eventually started managing other people’s money after showing he was successful.

Market Analysis: Selling in strength saved him from trouble

It’s not just about making the money, it’s also about keeping it. This is where selling in strength can help. This was one of the things that helped Tkaczuk with his portfolio management for 2020. The start of the year was so strong that it decided to make some profits. Fortunately, that was just before the coronavirus stock market crash.

In the current market environment, the pullbacks remain mild, the payout days are low and the upward trend is intact. In the past few months, many of the largest capitalization stocks in the market indices have done all the heavy lifting. Tkaczuk has seen more participation from more stocks in the past few weeks.

After a strong rebound from the 50-day moving average on August 19th, the Nasdaq composite looks a bit elongated. Then Tkaczuk is careful to secure some wins and not get aggressive at those levels. In addition, a few more sideways movements in his property led him to withdraw from his exposure.

Success in portfolio management depends on attracting executives

Tkaczuk wants to make sure he owns stocks that have the potential to become a market leader. You can often be wrong, and few big winners will make your portfolio much more forgiving of your mistakes. That’s on his radar now.

Nvidia share

The “usual suspects” keep control of the current market. This contains Nvidia (NVDA) and modern micro devices (AMD), both of which are leaders in semiconductors.

As part of his portfolio management idea of ​​selling in strength, Tkaczuk sold Nvidia shares in strength after a downward turn on June 18.

As soon as it formed a cup with a handle, he waited for the earnings report to come back into position. The strong volume pouring into the stock as it broke the downtrend in its grip is a compelling feature of the chart. Now he’s trying to possibly add a pullback.

AMD stock

AMD stock offers some good examples of looking back at past areas of support and resistance. Tkaczuk noted that AMD stock appeared to find support at around 80 but just couldn’t break above 100.

Areas of support and resistance are important to note. Especially when the same levels are further down the chart. When AMD stock broke above the 100 mark, the volume soared by far. The rise to 122 was quick and selling some in strength was probably a wise choice. And while the downward movement was also strong in volume, it wasn’t as strong as the volume on the top.

Now he is constructively hugging the 21-day moving average.

Tesla stock

Tesla (TSLA) was a big performer for Tkaczuk in 2020 and he doesn’t think the move is over. This was a stock that required some sales for portfolio management purposes simply because it was appreciating so much. If he hadn’t been careful, the massive gains would have stretched the portfolio weight beyond Tkaczuk’s comfort zone.

As Tesla stock entered the S&P 500, the news and speculation sent the stock up. When it hit 695 it was reasonable to assume the move was over, but Tesla stock continued to climb to 900. Then it fell all the way back to 539. But that area around 700 also proved important. Tesla stock began to tighten, and moves to that level were followed by smaller and smaller pullbacks. Tkaczuk found the close action convincing.

But not down below

Unity software (U) had a strong run in late 2020, but an equally dramatic decline. The podcast “Investing With IBD” put it back on Tkaczuk’s radar. The history of its market share dominance was hard to miss as the stock climbed back above its 200-day moving average.

Want more? Use IBD tools to find the nearest Nvidia stock

For custom stock ideas, it’s always a good idea to check out IBD’s stock listings page, especially the IBD 50 and IBD Big Cap 20, both of which list Nvidia stocks among their members. The IBD Breakout Stocks Index also provides a list of stocks worth tracking, and both Nvidia stocks and BLDR stocks are on that list. is also IBD Big Cap 20.

The IBD Sector Leaders are also worth seeing. It’s a select group with strict criteria, and Nvidia stock continues to deserve a spot on the list.

And of course, there are plenty of articles on the best stocks right now, and they’re regularly updated on Investors.com for more investment ideas.

For new episodes of Investing with IBD, subscribe to our podcast on Apple Podcasts, Google Podcasts, Spotify, Stitcher or your favorite listening platform.


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