Those who trade wish to make a lot of money. Traders are not trying to make $200 a day. They want to make much more. And often traders are ambitious. And they have rarely failed at anything they have done before. Perhaps they have been told their whole life that they were special. Most are the smartest person in most … Read More
What if I am Wrong?
I made some chops trading RIMM afterhours yesterday. More importantly I learned important levels. A ton of volume was done at 41 and 41.40 was a huge seller. Today my game plan was to aggressively buy if RIMM traded above 41.40. I was wrong. I had expected RIMM to fly after it held above 41.40. It didn’t. There was a … Read More
SRS
Momentum trading requires guts. Take a look at the two day chart of SRS. There is a ton of money trading the trend of SRS. But I am not gonna sit here and tell you it’s easy. But if you want to be a great momentum trader you must take advantage of opportunites like SRS. Often with momentum trading you … Read More
Getting Better
I read a lot of blogs. And lately a popular topic has been goals for 09. Personally I prefer to concentrate on finishing out the year strongly rather than spending any energy thinking about 09. I will do that when the month ends. Also, we don’t do a whole lot of big speeches at SMB. I don’t believe in that. … Read More
More Buyers than Sellers
HIG finished up 100 percent on Friday. At one point HIG was up 120 percent. At up 50 percent I heard the chirping. And chirping by very good traders. Chirp is an old school term defined as a trader definitively predicting the proper price of a stock. Chirp. Old school traders recognize that anything can happen at anytime. Old school … Read More
Price Matters
During two video review sessions today price was undervalued by our traders. For active day traders price matters. One of our talented new traders bought consistently at poor prices and was negative trading RIMM, while almost everyone else on our desk was in the green. Let’s talk about price some more. Wharton Junior was trading GS and added to his … Read More
That’s Not the Way We Do It
Today I overheard one of our new traders talking about fading GS around 71.20. GS had stopped going down. So this youngster, aka the Red Dragon, got long. And I heard what he was doing. I offered that I would prefer for him to continue trading GS on the short side until the downtrend was broken. Since apparently I just … Read More
End of the Month Review
I love stats. One of my favorite books is MoneyBall. Presently I am hooked on the wOBA that Rob Neyer has been blogging about. When I read rumors about the Yanks getting Sabathia or Burnett or Lowe I immediately check their important stats, such as their WHIP and strikeouts per innings. For me the idea of being able to quantify … Read More