Our new traders love to hear “back in the day” stories. You know the late 90’s when day traders were making 6 figures a month. What was the most you ever made in one day is a frequent question. And I tell our prop traders the story about when the Fed cut rates surprisingly intraday by 50 basis points. Now … Read More
Are You Making Money?
We teach our day trading desk, SMB Capital, in New York City to check to see which stocks they are making money in. I supposed a new prop trader reading this might say, “How could I not know that? Or that seems like a complete waste of time.” You would be surprised. The human mind is a funny thing. It does not … Read More
Go Home Flat
We teach our day traders at SMB Capital to flatten out before the Close. We do so because they are learning how to trade and are not ready to take positions for extended periods of time. At the start of your career you should learn how to trade. Not load up on a position and hope for the best. Well … Read More
Statistics, chocolate chip cookies and trading
If homemade chocolate chip cookies are made and I eat one, there is a 100 percent chance that I will eat many, many more. If I fade a strong stock, there is a 70 percent chance that this trade will result in a loss. Last nite we were visiting friends and our host made some chocolate chip cookies. I ate one … Read More
Sit In Your Seat
I am a process guy. It’s the stuff that goes into getting results that is much more important to me and as a result our prop trading desk at SMB Capital. I love to see our guys do the right things. And the past two days have been examples of our traders doing the little things necessary to trade successfully. … Read More
CHK- An important intraday level (71.35)
CHK was a great trading stock today. Proudly I can announce that are young traders killed CHK today. And CHK was particularly profitable trading the stock off of an important intraday level today at 71.35. CHK was up a ton and then started to show weakness. After the oil number was announced CHK failed at the 72 level, traded lower … Read More
Second Day (MYGN)
One of the plays that we teach our traders is called a Second Day Play. Today we had such a play with MYGN. MYGN had some bad news on one of their drugs that they were testing and the stock traded considerably lower yesterday. But into the close MYGN showed strength. It finished strong. However MYGN had trouble trading above 45.75: So … Read More
Run Fast Jump High (NKE)
Trading NKE this am. Below 62 will trade with a short bias if see selling. Down a ton on very light volume- bounce? The NKE specialist has a tendency to treat some orders unfairly. But when NKE is in play it is a very good trading stock. I have attached the chart of NKE below for some help. Good luck! … Read More