There are many facets to being a successful trader. One element that tends to be neglected by aspiring traders is the concept of position management. Position management is a combination of observation and action. A trader must observe the price action in both the market and their stock to determine whether or not to take action on an open position … Read More
Ready For A Break
After yesterday’s hard sell off into the close I was expecting some follow through to the downside. We did have some nice downside momentum this morning through the 108 level of the SPYs but by 11:00AM we were flat for the day and in consolidation mode. The price action was much different than last time we had a major down … Read More
One Good Trade
We evaluate our trading at SMB on the process. If you focus on the process instead of the result in any endeavor in life your chances at success are much greater. Too often people focus on the results. When you confuse a good outcome with good work you are bound to form bad habits that will harm you in the … Read More
“Help Me Help You”
One of the amazing benefits of being part of a prop desk is that we all make more money individually by sharing ideas. Important levels are shared via call outs on the desk, via our intraday alerts software, during video review sessions (VRS), and during our Stocks In Play call before the Open. It’s a constant battle to get those … Read More
Using Longer Term Levels Intraday
I want to discuss two stocks today that touched important longer term levels. There are several ways that an intraday trader can use an important longer term level. The first is as a price target. If a stock has been trending down recently and there is a major support level ten points lower then you can focus on trading that … Read More
Wow, That Was Some Bad Trading!
This morning I highlighted AIG in our Stocks In Play call before the Open. I discussed a great short entry based on the premarket price action. AIG had been trending down for over a week since it failed above 50. In today’s premarket it was below 39.80 which was the price it rallied from on September 21st. In the premarket … Read More
Understanding Inflection Points
A core part of SMB’s trading philosophy is identifying inflection points in the stocks we trade each day. These are prices where battles take place between buyers and sellers. After a battle is over a stock will typically move very powerfully away from these prices. Sometimes stocks will touch these prices two, three, or even four times in a day. … Read More
Ya Gotta Be Flexible
As an intraday trader I need to make many adjustments during each trading session. I have to determine if a stock is a short, a long, or a no trade. I may also make adjustments in how I am entering and exiting my position. If I don’t keep an open mind it is impossible to make the adjustments necessary to … Read More