I have a squier bullet strat and a traynor dg10 amp. I recently went to a guitar store and tried out a few different guitars. I decided that I preferred strat style guitars, both when it comes to feel and sound.

I only have 300 dollars and I'm not getting any more soon, so I want to know what's the best route to upgrading my setup, get a new amp since mine does not have very good distortion or a new guitar, maybe a better squier or a yamaha pacifica, I like how the pacificas have coil tapping on their bridge humbucker, but the hss squiers don't for some reason. What is the best strat style guitar I can get for 300 dollars? I have also thought of just upgrading the pickups on the guitar, what are your thoughts on that?Anyway my question mainly is what is the best way to get a better sound for 300$.
Short answer: new amp
In order to better guide you we will need musical preferences, location, budget (is $300 your max), new or used? Answer these questions and we will give you a lot of ideas.
Best of luck!
Gibson LP traditional and DC standard, PRS S2 Custom 24, Schecter Banshee 7
EVH 5153, Mesa DR Tremoverb combo 2-2x12's
Line 6 M13
You need both and with that amount you're limited.

Used MiM Fender Strat. Used Fender Mustang 2 amp. That will probably around $400. I can't see you getting much for less.

Upgrading the pickups on a guitar like the Bullet is a false economy. They'll cost $200 and with that (and a little more on top) you can get a much better guitar.