Internally SMB  shares intraday alerts for all major intraday levels that our desk discovers.  Our desk is taught to share important intraday levels verbally through our audio feeds.   None of this works without trading skills.  None of this works without the trader sticking with a trade.  Let’s discuss.

Today I was trading OSIP.  It was In Play, had gapped up, and was holding at these elevated prices.  But 30.40 became significant intraday resistance.  30.40 would just not lift the offer.  30.40 offer was immovable.  And I shared this resistance level with the desk.  First we were short.  But then after OSIP was not trading much lower after meeting this substantial intraday resistance level, it appeared likely that the level would be violated.  We stayed short but ready to cover and flip above 30.40.

Finally 30.40 lifted and I covered and flipped.  OSIP traded up about 15c but then traded lower than 30.33.  This was not what we were looking for.  Some may have bought 47c, watched the stock trade higher, and then exited when OSIP traded below 40c.  Some may have bought even higher and hit a little lower.  Some may have taken an initial rip after this level, 30.40, was violated.

Look, anyone can buy a stock when it violates a resistance level and profit if it explodes.  And there will be trades when a stock breaches a resistance level, you get long, and the stock explodes.  Chop!  But these will be your best trades.  What about the good trades, the mediocre trades, the poor trades, the difficult trades, etc.  What about them?  Can you handle those?  Or will you carp about how the stock did not immediately explode above the level?  Will you join the ranks of the lesser trader?

Because the lesser trader thinks that trading is just about finding levels, taking positions, and making serious bank.  This is not the market I have traded for the past twelve years.  But the market is fair to those with trading skills.  And there is serious bank for those who develop trading skills.  And one is to stick with a stock.  And OSIP today is the perfect example.

So when OSIP initially failed to break out above 40c I took a small rip.  But I stayed with the stock.  The 40c resistance level was replaced with the 50c resistance level.  Greaaaaaat!  But I remained patient.  I waited for OSIP to hold above 50c which btw took a few more fake breakouts above 50c.  But finally OSIP held above 50c, made an impressive upmove to 77c, and never broke its intraday uptrend till very late in the day.  Finally we caught a decent upmove.

The lesser trader exits after the initial failed breakout and moves on.  The lesser trader does not stick with their stocks.  The lesser trader learns a level and can only trade the stock if it acts exactly how they have decided it should.  But that isn’t the trading that I know.

Levels are not helpful unless you learn how to trade.  These levels are invaluable only for those with trading skills.

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