Netflix has been on quite a tear since they reported strong earnings in April trading higher by more than $200. But for short term traders who each day look to trade lower time frame trends NFLX offered a good short setup Friday morning. These are some factors I considered prior to sharing the setup in our morning meeting. Netflix had a huge … Read More
Making Predictions as a Short Term Trader
Wall St. economists and big bank analysts often make inaccurate forecasts on stock prices. Short term traders predict price action more accurately because: Short term traders look at catalysts and current price action We understand how market participants will act to different types of catalyst and trade accordingly Predictions are for a shorter time frame We constantly reevaluate our trading thesis I hope this … Read More
A Low Risk Entry For A Long Term Breakout–FEYE
Since the beginning of the year FEYE had been consolidating between 38 and the mid 40s. It has had a lot of positive news flow this year but had many failed breakout between 45-46. I made a conscious decision not to get long in the mid 40s until it cleared all resistance for the year on heavy volume. On May 28th … Read More
Implications of the Mid Cap/Large Cap Correlation Break Down
The correlation of the $RUT to the $SPX and $DIA has recently taken a nosedive. Correlation is a way to see how synchronized two markets are moving. In the chart below, you can see that the correlation indicator on $RUT vs. $DIA has moved to slightly below 0.00; signaling a low correlation. A zero correlation represents randomness. A correlation closer … Read More
Mindset Hacks: Adopt the Mindset of a Champion
This is the final blog post in a 3 part series from Bruce Bower on Peak Performance. Part 1 was on consistency and Part 2 was on making better decisions. When we did a survey of the top three topics that people wanted covered, I was surprised by the third place winner: “Mindset Hacks: Adopt the Mindset of a Champion”’. On the other … Read More
Consistency Is Not A Game of Perfect
By Bruce Bower We asked and you chose. The people have spoken. We asked the SMB community which topics they wanted to learn more about it in the upcoming “Peak Performance Trading and Investing” video course. Out of a list of ten topics, by far the most popular was “How to Be More Consistent”. This is one of the most … Read More
What Does “Losers Average Losers” Mean?
Many years ago Paul Tudor Jones was photographed in front of a photo that read “Losers Average Losers”. What the heck does that mean and why is it so important? As traders our #1 job is managing risk. If you add to losing positions it may become extremely difficult to manage your risk. For example, If you put on a position … Read More
Trading Lesson: Finding The Best Trading Opportunities
Every morning I create a written game plan with 8-10 stocks that I believe will offer the best risk/reward trading setups. The game plan is divided into two categories: Fresh News/In Play Stocks and Second Day/Technical Plays. As I was creating today’s game plan I began to feel a small level of anxiety as I wondered how to hone in on … Read More