I was standing behind a new trader, Battery Park, watching him buy a pullback in a Stock In Play. Battery Park bought 76c and hit out at 63c. He should have hit out at 69c. Then Battery Park reentered at 65c when he could have bought 58c on the bid. We talk about Reading the Tape often in this blog but … Read More
Opening Drive Play (CTSH)
CTSH gapped down from a close of 83 to 78 in the premarket. Intraday Fundamentals (From Barron”s) Shares of IT outsourcing firm Cognizant Technology Solutions (CTSH) are off $6.11, or 7.4%, at $76.10 after the company this morning despite beating Q1 estimates and forecasting the current quarter and the year above estimates. The drop is likely part of the broad-based weakness in IT … Read More
9/11
Excerpt from One Good Trade
Your Monthly Trading Review (An Example)
I met with three young traders in my office Friday after the Close. I tasked for an email sent to me outlining their goals for the next month after a review of April. I am convinced these three traders will become the next very good traders we have developed. That is of course if they continue to work hard. It is … Read More
The Internship of a Lifetime
I’m not someone who typically believes in luck, but in this case I feel I barely scrapped by. This internship was a tough one to get. I went through three interviews with Bella, Steve, and Gilbert. I first got in contact with Bella in December for a little career advice, after reading his book. (At the time I was learning … Read More
Another Ridiculously Easy Set Up (BJ)
I just got an email from a developing trader describing the below as “another ridiculously straightforward set up from today.” I chuckled. He had sent me a few already. But as we like to say daily on this teaching blog, it’s about finding the plays that make sense to you and trading them more often and with more size. And … Read More
Execution Trading Skill
Trading is a skill. Gaining trading skill takes time. Today in JNJ and HAL execution trading skill was essential. Let’s quickly discuss two trades to illustrate this important trading point. JNJ was in play. Amazing Andrew was hawking the 62.10 level as intraday support. Something about the premarket. JNJ opened and traded down towards his support level. 14c held the … Read More
SLW 40: Opportunity for the Skilled Trader
I was walking the trading floor, making my rounds, when a trader motioned for my opinion. “Bella what do you think of SLW?” “Looks weak intraday. Where is the next support level?” The trader searched his longer term charts and muttered,”40.” Guess where the stock was near? 40.40 but heading towards 40. I asked, “Are you going to get long … Read More