SMB Capital's Fastest-Growing Trader Spills His Secret To 40x Returns—It's Not What You Expect

While most retail traders obsess over finding the perfect entry point, Brandon Sachi, the fastest-growing trader at SMB Capital, has discovered something far more powerful: the art of working around a core position. His approach has enabled him to risk 30 to 40 times more on his best trades compared to routine scalps—and the results speak for themselves.

The Core Position Strategy That Changes Everything

Sachi’s breakthrough came from adopting what he calls the “channel trading concept,” learned from fellow SMB trader Lance Breitstein. The strategy revolves around establishing a core position—shares you’re comfortable holding for the bulk of a move—then masterfully working around it to maximize profits.

Don't Miss:

• Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM—Just $0.63 Before NASDAQ Launch
• $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation.

Here’s how it works in practice: If Tesla (NASDAQ:TSLA) breaks out above $300 on strong volume, Sachi might establish a core position of 1,000 to 5,000 shares. As the stock climbs and inevitably pulls back during intraday “wiggles,” he uses volume and tape reading to add shares during retracements, then sells those additions as the stock rebounds—all while maintaining his core position.

“Average price is irrelevant when working around a core,” Sachi explains. “The focus is entirely on total profit and loss.”

The Power of Exponential Bet Sizing

What separates elite traders from the rest isn’t just strategy—it’s sizing. Sachi employs what SMB Capital calls “exponential bet sizing,” a concept he says he never understood as a retail trader.

For routine day trades, he might risk just 1%-2% of his daily stop. But for “B+ to A-” setups, that jumps to 5%-10%. His best monthly opportunities warrant 15%-20% risk. The crown jewel “A++ home run trades” justify risking his full stop—creating exponential differences in potential returns.

This sizing approach is driven by confirmation levels. Sachi waits for three types of validation before entering significant positions:

Trending: ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share.

Price confirmation: The actual breakout occurring Volume confirmation: Immediate, sustained volume surge showing market interest

Tape confirmation: Large offers decreasing, fresh buying, and transactions occurring at the offer

The more confirmations align, the larger his position size becomes.

Fluidity: The Trader’s Ultimate Weapon

Perhaps Sachi’s most valuable insight comes from his team leader: maintain fluidity in execution. This means avoiding rigid rules like “only buy breakouts” or “only short weakness.” Instead, successful traders adapt to what charts reveal, whether that’s momentum plays or retracement opportunities.

Sachi grades himself daily on fluidity during his post-market review, understanding that adaptability allows him to build cushions and take large positions when precise moments arise—typically 2-4 times per trading day.

Debunking the Midday Myth

While conventional wisdom warns against midday trading due to “choppy” conditions, Sachi takes a different approach. He recognizes that midday difficulties typically stem from volume drying up. When fresh news drives continued volume, he remains active, emphasizing the importance of understanding the “why” behind trading heuristics rather than blindly following them.

See Also: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here’s how you can earn passive income with just $10.

The Bottom Line for Retail Traders

Sachi’s approach offers valuable lessons for individual investors, though his institutional advantages at SMB Capital—including advanced tools and professional training—aren’t readily available to retail traders.

The key takeaway: focus less on perfect entries and more on position management around a core thesis. Whether trading individual stocks or ETFs, consider how you might work around initial positions rather than simply buying and holding or making binary all-in/all-out decisions.

Most importantly, develop fluidity in your approach. Markets evolve constantly, and rigid strategies often fail when conditions change. The traders who thrive are those who adapt their tactics while maintaining disciplined risk management principles.

Read Next: Are you rich? Here’s what Americans think you need to be considered wealthy.

Image: Shutterstock