Andrew O’Connell’s 254% Return in 2024: Top Strategies and Lessons from a USIC Champion

Andrew O’Connell’s 254% Return in 2024: Top Strategies and Lessons from a USIC Champion

Andrew O’Connell’s 254% return in the 2024 US Investing Championship (USIC) solidified his status as one of the top traders in the U.S. His disciplined approach, focus on major market themes, and ability to capitalize on opportunities while managing risk played a crucial role in his success.

In this blog, we break down his strategies, key trades, and the lessons traders can learn from his journey.

“If you really want to succeed in trading, think in terms of years and decades. Stay in the game, keep learning, and always have that beginner’s mindset. The longer you last, the greater your potential becomes.”

Andrew O’Connell

How Andrew O’Connell Capitalized on Major Market Trends

One of the biggest factors behind Andrew O’Connell’s success was his ability to spot and trade strong market themes. Instead of randomly picking stocks, he focused on sectors and industries experiencing massive inflows of capital, ensuring he traded with the market’s momentum—not against it.

His process for tracking market themes includes:

Andrew O’Connell’s strategy is rooted in a simple principle: big money flows into themes, and traders who follow that flow have an edge.

By focusing on sectors gaining institutional attention, he ensured that he was never fighting the market. Instead, he used market momentum to his advantage, stacking the odds in his favor.

Andrew O’Connell on Tracking Market Momentum for High-Probability Trades

At the start of 2024, Nvidia (NVDA) and other semiconductor stocks surged as AI demand skyrocketed. Instead of chasing extended moves, O’Connell waited for pullbacks to key technical levels before entering.

🔹 His approach:

• Identified the semiconductor sector as a market leader.
• Waited for stocks like NVDA and AMD to consolidate and form a base.
• Bought breakouts and added to winners as momentum continued.

🚀 Result: By aligning his trades with the broader AI-driven semiconductor trend, he captured a massive upside while minimizing risk.

When Bitcoin started rallying in early 2024, O’Connell didn’t just buy Bitcoin—he looked for stocks that would benefit the most from its rise, such as MicroStrategy (MSTR) and Coinbase (COIN).

🔹 His approach:

• Entered MSTR after it broke out from consolidation, riding Bitcoin’s strength.
• Avoided overpaying for options, choosing common stock instead.
• Took profits before a major blow-off top to lock in gains.

💡 Lesson: Instead of trying to predict individual stock moves, O’Connell focused on sectors already moving in the right direction.

Key Trades That Powered Andrew O’Connell’s 254% Return

Alibaba (BABA): Capitalizing on a Trend Reversal

O’Connell recognized a potential trend reversal in Alibaba early in the year. The stock had been in a long downtrend but started basing and showing accumulation signs.

How He Traded It:

• Bought near the lower end of the base with call options (deep in-the-money, long-term expiration).
• Added to winners: As Alibaba started breaking out, he increased his position.
• Sold into strength: Exited trades when Alibaba became extended from the 50-day moving average.

Symbol: BABA
Company: Alibaba Group Holding Limited
Date: September 2024

Click on the chart above to make it bigger.

Result: Options doubled in value, and shares returned 20-30%.

MicroStrategy (MSTR): Riding the Crypto Wave

Bitcoin’s resurgence in 2024 made MicroStrategy (MSTR) one of the biggest winners. O’Connell first bought MSTR after a pullback, following a parabolic rally in February.

His Approach:

• Bought after a consolidation breakout in May, near the 20-day moving average.
• Exited into strength: Sold shares before a major blow-off top.
• Avoided options due to high implied volatility.

Symbol: MSTR
Company: MicroStrategy
Date: May & October 2024

Click on the chart above to make it bigger.

Lesson: He avoids expensive options and prefers common stock in stocks with high volatility.

Rocket Mortgage (RKT): Interest Rate Play

When interest rates dropped mid-year, O’Connell saw an opportunity in mortgage-related stocks.

The Trade Setup:

• Bought RKT as it formed a volatility contraction pattern (VCP).
• Held as mortgage rates fell, increasing demand for refinances.
• Exited into strength as the rally matured.

Symbol: RKT
Company: Rocket Companies
Date: July and August 2024

Click on the chart above to make it bigger.

Lesson: Tracking macro trends like interest rates can lead to high-probability trades.

Risk Management and Cutting Losses Quickly

One of the biggest reasons traders fail is poor risk management, but O’Connell’s disciplined approach helped him avoid catastrophic losses while maximizing his gains. Instead of hoping losing trades recover, he focuses on cutting them quickly and adding to winning positions

The “No Averaging Down” Rule

Averaging down—adding to a losing position in hopes of a rebound—is one of the most common mistakes traders make. Many traders fall into this trap, thinking they’re getting a “better price,” but in reality, they’re increasing risk and exposure to a trade that’s already proving them wrong. O’Connell completely avoids this strategy, following a strict rule:

🚫 Never add to losers – If a trade goes against him, he cuts it quickly and moves on.
✅ Add to winners with momentum – If a trade is working, he adds to it, letting the market confirm his thesis.

Averaging down might seem like a good idea when a stock dips slightly, but if the stock continues to fall, it can turn a small loss into a massive one. Many traders who average down end up trapped in losing positions, unable to cut their losses because they’ve invested too much.

Instead of adding to losers, O’Connell scales into winning trades—stocks that are proving his thesis correct. This allows him to ride strong trends while keeping his risk under control. His process involves:

This approach allows him to take advantage of trending stocks while keeping his downside risk low.

Key Lessons for Traders from Andrew O’Connell’s 2024 Performance

Andrew O’Connell’s 254% return in 2024 was driven by a disciplined, strategic approach to trading. His success came from focusing on strong market themes, managing risk effectively, and executing trades with precision. Here are the key lessons traders can learn from his performance:

Trade with Market Momentum

• Focus on sectors with strong institutional support, such as crypto, Chinese stocks, and rate-sensitive sectors.
• Avoid randomly picking stocks and instead, trade with the flow of capital.
• Enter trades at high-probability setups, ensuring he was aligned with the biggest market opportunities.

Strict Risk Management

• Never add to losing trades, to prevent major drawdowns.
• Cut losses quickly, ensuring small mistakes don’t turn into big ones.
• Add to winners when trends are confirmed, to maximize gains in strong trades.
• Avoid reckless bets on high-volatility stocks and options, focusing on calculated risks.

Emotional Discipline

• Never engage in revenge trading, even after a loss.
• Maintain a data-driven approach, avoiding impulsive decisions.
• Stay calm and disciplined to remain consistent and methodical.

Preparing for 2025: Refining a Winning Strategy

Despite his record-breaking performance in 2024, Andrew O’Connell isn’t getting complacent. For 2025, he plans to refine his strategy by:

• Minimizing drawdowns – Aiming for smoother equity growth instead of large swings in performance.
• Focusing on risk-adjusted returns – Prioritizing consistency over absolute gains to build long-term wealth.
• Using more trailing stops – Locking in profits while staying in winning trades longer to maximize upside.

His approach proves that consistent execution, risk management, and theme-based trading are the keys to achieving elite-level returns.

For traders looking to improve their performance, Andrew O’Connell’s strategy offers a blueprint for long-term success: follow strong market themes, cut losses fast, size up in winners, and always keep emotions in check.