We watched tape of MEE from yesterday after the Close. It was a very difficult stock. But I heard a comment from a very bright trader that I bet is heard on other trading desks:” I don’t like scalping MEE because I can’t tell when it is going to spike 20c against me.”
I know too many traders passed on AIG today. One told me recently, “AIG is too fast for me.”
I received an email from a developing retail trader yesterday asking if he “had to trade MON” today. There was an opening range play long, a momentum trade short below the significant support level of 70, and a Trade2Hold beneath 68.85 gifting trading opportunities today in MON (Monsanto). To that emailer I ask: are you allergic to money? 🙂
I know some traders focusing on breakouts and only breakouts in this current market. This is an excellent idea since the market knows nothing but straight up. These trades will work as long as that market is intact. How many trading months over the next ten years will that be the case? Will you have the trading skills to exploit new patterns when they are valued and buying breakouts isn’t?
There were a few scalps to be made in MEE the other day. Granted how much we scalp is down considerable and is not our focus in 2010. But that does not mean certain scalps are not very profitable. If one is presented then I scalp. And not being sure whether you can control your stock in a scalp means then that that isn’t a good scalp opportunity. But that does not mean there aren’t any scalping opportunities.
There is no such thing to me as a stock that is too hard or too fast or too anything (though I kid I am the worst GS trader on the Street). If one is then I work on getting better so it isn’t too anything to me. The market does not care what stocks I prefer, it cares that I am trading the patterns that are being most rewarded intraday. And sometimes that is getting my hands dirty in very fast stocks that test all of my trading skills. And sometimes that means scalping. And sometimes I must trade a bit uncomfortable. I am a trader.
8 Comments on “I AM A TRADER”
Hi Bella,
I can attest for the sake of new traders ( I am in the process of finishing up SMB remote Foundation training program) what you just outlined in your article ” I am a trader”. I am a new trader – traded on my own and learned on my own and lost money on my own for a year till I by chance found about SMB capital via Dr. Brett Steenbarger blog.
With all the limitations of a developing trader e.g slow speed on keyboard, not enough experience with finding chart patterns etc.. I actually find trading stocks like MON, CPBY, RiMM, ARQL ( I traded all of these stocks successfully this week) quite forgiving. provided they have VOLUME and you find your own LEVELS which you are comfortable with to trade.
Going over my log book I can see that despite poor executions and not properly identifying all intraday levels – I still ended up making more money then I did all in year 2009.
As Steve Spencer of SMB capital says- I only need my inside box, time and sales, intraday levels and VOLUME- lots of it to make a good trade.
As a developing trader I only pick one stock and trade it all day at the levels I find to be compfortable. Do not shy away from these type of stocks. The VOLUME is your protector.
Hi Bella,
I can attest for the sake of new traders ( I am in the process of finishing up SMB remote Foundation training program) what you just outlined in your article ” I am a trader”. I am a new trader – traded on my own and learned on my own and lost money on my own for a year till I by chance found about SMB capital via Dr. Brett Steenbarger blog.
With all the limitations of a developing trader e.g slow speed on keyboard, not enough experience with finding chart patterns etc.. I actually find trading stocks like MON, CPBY, RiMM, ARQL ( I traded all of these stocks successfully this week) quite forgiving. provided they have VOLUME and you find your own LEVELS which you are comfortable with to trade.
Going over my log book I can see that despite poor executions and not properly identifying all intraday levels – I still ended up making more money then I did all in year 2009.
As Steve Spencer of SMB capital says- I only need my inside box, time and sales, intraday levels and VOLUME- lots of it to make a good trade.
As a developing trader I only pick one stock and trade it all day at the levels I find to be compfortable. Do not shy away from these type of stocks. The VOLUME is your protector.
I made a ton in MEE yesterday scalping in and out. It was almost too clean. I was actually nervous on my trades that a box will come out and sweep the stock to a price I have to cover.
I got smoked in MON today even though I got a few 50,60 and 70 cents scalps out of it. The shakeouts from the algorithms were a bit too much. At times it reminded me of a NASDAQ stock.
Over the past two days I realize that centering your gameplan on trades2hold is much more worthwhile than move to move scalping. the commissions are just too much when you are playing tug of war with black boxes. Focusing on the absolute best prices also keeps me in a position of strength even though the algos are sweeping 20 cents up to get the weak shorts out.
I made a ton in MEE yesterday scalping in and out. It was almost too clean. I was actually nervous on my trades that a box will come out and sweep the stock to a price I have to cover.
I got smoked in MON today even though I got a few 50,60 and 70 cents scalps out of it. The shakeouts from the algorithms were a bit too much. At times it reminded me of a NASDAQ stock.
Over the past two days I realize that centering your gameplan on trades2hold is much more worthwhile than move to move scalping. the commissions are just too much when you are playing tug of war with black boxes. Focusing on the absolute best prices also keeps me in a position of strength even though the algos are sweeping 20 cents up to get the weak shorts out.
Hey Bella,
don’t confuse the the people here. You have to find instruments – in your case stocks – which fit to your style and personality. As you said even you cannot trade every stock well and lost consistently in some of them.
Best,
Markus
Hey Bella,
don’t confuse the the people here. You have to find instruments – in your case stocks – which fit to your style and personality. As you said even you cannot trade every stock well and lost consistently in some of them.
Best,
Markus
Don’t you think that it is good if people stay away from trades they are not comftorable with though? You feel comftorable making those trades because you are an educated trader. Emotions like fear are signals that you don’t know enough about the trade you are making to make it and should stay out or you will likely make an emotional play later on. Good content though. I am going to follow your blog.
Don’t you think that it is good if people stay away from trades they are not comftorable with though? You feel comftorable making those trades because you are an educated trader. Emotions like fear are signals that you don’t know enough about the trade you are making to make it and should stay out or you will likely make an emotional play later on. Good content though. I am going to follow your blog.