I can hardly see. My wrists are killing me. My brain is so tired I can barely remember the stock I was trading in the After Hours (AH). Oh yeah AAPL, that tech company run by one of the best CEO’s in the country that everyone has been blogging, talking, and opining about. Cramer is chirping something about something in the background. Even young GMan is starting to tire. Spencer is ready for some more but he could trade 24/7. Is this how Favre feels after last night’s game? We are about the same age. The good news for me is I didn’t have any 350 linemen falling on me.
But I love trading in the After Hours. Not because of the potential quick money. Though that can be nice. Not because catching something before others makes me feel smarter than most. And who doesn’t like to feel smarter than others? But because trading in the AH is a great way to practice your intraday trading skills.
Stocks move. You margin of error is slight. Catalysts on the tape must be immediately recognized. Execution skills are tested for precision and speed. Overall this period of trading makes me a better trader.
A few rules that I follow:
a) I almost never buy a stock on the offer
b) I almost never fade
c) I follow the trend
d) I hold stocks when they start trending until there is a reason to exit
e) I lower my tier size
f) I never double down
g) I make sure all the news is out
h) If there is a conference call I listen to the call so I am not surprised by an important statement.
One of our young traders traded AAPL on the demo (our simulator) in the AH because he was not ready for Primetime. I offer this idea to you if you are not quite ready for the volatility of the AH. It is a time period for only the best of intraday traders.
Remember I am tired so that is about all the rules I can remember. For those interested, 205 seems to be the important level in AAPL. AAPL couldn’t trade below 200. 205.85 was a point of resistance. I am surprised that after AAPL cleared 204 that we did not visit at 208 (but no one asked me where the stock ought to be priced).
Where do I think AAPL is headed tomorrow? I am not really sure. CNBC screwed up the earnings announcement so badly that they confused even me. Just a hint: if you are going to discuss AAPL’s earnings live on TV spend a few minutes beforehand preparing please. Above 204 shows some technical strength for AAPL on our long term charts. I will come in tomorrow and see where we open. Above 205.85 is a sign of strength. Below 204 is a sign of weakness. And then I will just trade it.
Ok so I fought the good fight. Time now to go home and watch the Bachelor and eat some hummus (nothing is better than mindless reality TV after a full day of trading like today).
Best of luck with your trading!
Flat AAPL
Tomorrow’s blog: How to Day Trade
12 Comments on “A Great Exercise to Improve Your Trading”
You guys use lightspeed for your demo?
You guys use lightspeed for your demo?
You guys use lightspeed for your demo?
We have our own for internal practice and we use LS’s for the situation above.
We have our own for internal practice and we use LS’s for the situation above.
We have our own for internal practice and we use LS’s for the situation above.
nice Bella. Same practice techniques intra day?
nice Bella. Same practice techniques intra day?
nice Bella. Same practice techniques intra day?
Eric,
Good exercise from Dr. Steenbarger is to trade on the demo midday if you are struggling during this time period.
Mike
Eric,
Good exercise from Dr. Steenbarger is to trade on the demo midday if you are struggling during this time period.
Mike
Eric,
Good exercise from Dr. Steenbarger is to trade on the demo midday if you are struggling during this time period.
Mike