Just read GMan’s blog about SMB’s Batman night. I have to add a few thoughts. 1) Watch Batman on an IMax screen. It is an incredible movie watching experience. If you live close to NYC or in NYC don’t just go see it on a regular screen. Go and find an IMax theatre. If you have already seen in on … Read More
Be in the Stock When It’s Moving
As we have mentioned previously in my blog some have emailed me with concerns that program trading will rule trading soon. The market will never displace the disciplined independent trader. What is certain is that programs mandate that you adjust your trading and more selectively choose your entry points. Let’s take a look at ELN from yesterday to illustrate this … Read More
Just Trade
There was a bunch of chatter on our desk before the Close about a dead market. DQ, a solid young trader, was complaining, “The energy stocks stopped moving. They don’t move that well after 2:30. Nothing is movin.” I remarked, “So take a look at some of the financials, young fella.” MER was sitting there at 25, bobbing and weaving … Read More
Scalping
Scalping is an important trading technique for new traders to learn. Yesterday was a great example for why. But let me take a step back. Every so often we get a cocky young student who strides into my office and asks direct questions. The last young such kid started with, “do you just teach scalping techniques?” A perfectly legitimate question. … Read More
SMB Training Program Recognized
Well today was a proud day for me and my partner. Dr. Steenbarger, one of the top three trading coaches in the country, wrote a very nice blog about our training program (http://traderfeed.blogspot.com/2008/07/training-successful-traders-new-breed.html). Steve, GMan and I worked very hard to develop our training program and it is a great honor to be mentioned by Dr. Steenbarger. On our desk I always describe … Read More
A Trade You Must Be In
On our desk there are trades that you must be in. There are setups that if offered by the market you must exploit. You should have a list of the trades that you must be in. And if this trade results in a loss you are not annoyed. In fact you are grateful for the opportunity. There are trades where … Read More
The Day Doesn’t End Until 4
One of my favorite phrases on our prop desk at SMB Capital is: the day doesn’t end until 4. If you start negative then you have the rest of the day to make it back and then some. In this market there is so much opportunity it is a waste of energy and irresponsible to get down after a few … Read More
Blackboxes/Algorithms Nothing to Fear
I received a GChat message from a future trader, Carter, who was interested in the impact of blackboxes or algorithms on intraday trading. I have heard Carter’s concerns from other future traders. Some believe that blackboxes will rule trading and eliminate the intraday trader. A few thoughts: 1) I have heard this argument for the past 5 years and I … Read More