An experienced trader, GM, emailed me late last night as the Yankees were getting pounded again by the Angels. GM had some very kind words for my previous blog post, which I appreciated and made the latest Yankees loss more palatable. In return I would like to spend some of this Saturday AM offering some guidance on his recent struggles. … Read More
Getting Flustered
We had a film review yesterday with one of our better young traders. The young man can trade. But he under-performed on the Open. So we watched the video of his Open. It was like someone else was inhabiting his body. I did not recognize this type of trading from him. In fact I am not sure you can really … Read More
Batman
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
Is It Really That Bad?
Yesterday, ELN and WYE were massacred, by Wall Street standards, because of a drug that was being developed for Alzheimer’s disease and failed in phase II trials. The experimental drug was said to “only help half of patients and was linked with a brain-swelling side effect” by Bloomberg.com. (You can read more about it here: http://www.bloomberg.com/apps/news?pid=20601103&refer=news&sid=aseKG.hyyRkw) In the aftermath, ELN … 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
Managing Your Profitable Position
During the fourth of July weekend I wrote about oil being ridiculously overpriced (see the blog entry here:Wicked oil). Over the next 2-3 sessions after blogging about it, oil sold off hard ($144 to the low $130s) but it didn’t necessary top off the way I had expected. It was a good sign but I did not have confirmation for … Read More