Today was the first time I have ever traded SLV. Or at least I cannot recall trading it previously. In the past week I have read several blogs and watched a couple of videos related to the monster run that silver is on. After the close today I interviewed some kid for the desk who asked me when this “bubble” … Read More
A LULU Lesson
There wasn’t a lot of fresh news today so the focus of SMB’s AM Meeting was Second Day Plays and Technical Setups. SDPs are setups in stocks that were In Play the prior trading day and tend to offer some well defined opportunities for a few more trading sessions. TSs are setups based on a longer time frame technical pattern … Read More
Traders Ask: How Do You Use The Retracement High/Low?
Bella received the following email from a blog reader today Dear Mike, Thank you for an OUTSTANDING book. After studying the information within I now feel like I have a framework for improving my skills with each trade, every day. Steve talked about trading the retracement high today on stocktwits TV today. Could you please explain in more detail and maybe … Read More
Crazy Cramer
I think one of the things that served Jim Cramer very well while he was a hedge fund manager was his mental flexibility. He could blog at 8:00AM how he loved VZ, but by the next day he could talk about how it was a piece of garbage. Many people thought he was crazy for changing his mind so quickly … Read More
Bias Shmias!
One of the most frequent confessions I hear from developing traders is that they couldn’t change their bias when the price action warranted such a change. They develop a bias as to which direction a stock will trade and hold on to their viewpoint despite overwhelming evidence to the contrary. I have even heard there are many experienced traders who deal … Read More
Don’t Be This Guy
Yesterday in the AM Meeting I mentioned XOM basically as an aside. It had reported earnings and was at the 52 week high in the premarket, so I felt obligated to at least mention that it should be bought above that level. So it ended up consolidating tightly right below the 80 level and I’m sure a bunch of SMB … Read More
My Trading Philosophy
(This blog was written on 1/25/11. But I’m lazy so didn’t post it until tonight) When a stock has fresh news and huge volume it is a great trading candidate for me. My experience tells me that there will be more trading opportunities intraday in these situations and the risk/reward will be more favorable than most other trading scenarios. In … Read More
Let’s Get Ready To Rumble
I received an email today from one of our trader/trainees. He was doing some prep work for earnings season and was interested in some feedback. Earnings season is the playoffs for professional traders. Each quarter during this period we are afforded additional trading opportunities with great risk/reward. It is essential that we are performing optimally during this time in order … Read More