Financially independent stock trader Erik Smolinski has consistently outperformed the S&P 500, thanks to a disciplined approach to trading and detailed reviews of his strategies. Smolinski emphasizes the importance of regular assessments, which he believes are essential for any investor looking to improve their performance in the stock market.
Smolinski began trading stocks as a teenager in 2007 and has since posted just two negative years—his first two. Between 2018 and 2022, he achieved an average annual return of 24.6%, with 2023 marking his strongest year yet, boasting triple-digit returns. His portfolio in 2025 is already up 79%, positioning him for another successful year.
Organized Strategy Drives Results
A cornerstone of Smolinski’s success lies in his organizational skills. He maintains a detailed trading plan and log, allowing him to monitor his performance closely. He conducts regular after-action reviews (AARs), opting for monthly evaluations complemented by a comprehensive annual review that can take up to two weeks. This process enables him to analyze what strategies are working, which are not, and how he can adapt moving forward.
Smolinski notes that market dynamics can shift significantly. “For a very, very long time, growth stocks outperformed large-cap stocks,” he explains. However, he warns that this trend may not always hold true. Without a systematic approach to reviewing performance, traders risk underperforming, especially as sectors like technology evolve rapidly.
The AAR process allows him to identify key market changes and make informed decisions about his trading strategies. He emphasizes the necessity of knowing when to pivot away from less effective methods: “You have to know when to stop doing those things and pivot to something else.”
Advice for Everyday Investors
Smolinski believes that everyday investors can greatly benefit from adopting a similar review strategy. Instead of adopting a “set it and forget it” mentality, he encourages individuals to regularly evaluate their portfolios. He suggests setting a specific time, ideally on weekends, to ensure that they can dedicate focused attention to their investments.
“Start your AAR by looking at your returns,” he advises. For regular investors, comparing performance against major indexes like SPY, QQQ, IWM, TLT, and GLD can provide valuable insights. He encourages investors to ask themselves critical questions about their performance: “Am I cool with this? Do I think that I’m set up appropriately?”
By conducting these assessments, investors may discover that certain mutual funds are underperforming, potentially leading to changes that could enhance their returns. Smolinski’s method underscores the importance of staying proactive in managing investments, rather than remaining passive.
In summary, Erik Smolinski’s disciplined approach to stock trading, characterized by systematic reviews and a willingness to adapt, has yielded impressive results. His strategy serves as a valuable lesson for both seasoned traders and everyday investors alike, illustrating that diligence and organization can significantly impact financial success.
