When was the last time you got a paper cut? Do you remember? I’d bet you struggle to come up with the time and place. Exactly, you forgot. Keep your losses like paper cuts so you can forget about them and continue working. Paper cut losses are simple, effective and essential. Novice intraday traders need to understand the importance of taking paper cut … Read More
Traders Ask: How do you find levels “you love”?
Hi Mr. Bellafiore, I read your book and have been a daily reader of the blog ever since. I especially appreciate your and Adam Grimes’s posts. I trade the e-mini (ES) but would like to trade more stocks if I can figure it out. The recent post on execution was pointed. I suspect the difference in the trader who was shaken … Read More
Give Yourself Time
Got back from a run. Yeah, this Georgia Tech campus is very nice. Had a mocha frappachino from Starbucks (I do not even know what that is and I unordered the size three times) to help with my 4am wake up call. Walked the room for my presentation. I like to get a feel for the room and see myself … Read More
Simon Says Simply Read The Tape
Day trading profitably requires Reading the Tape. Reading the Tape is a skill. It’s a skill that can be learned. However, it doesn’t always come easy to the beginning or underperforming traders. Listening to Simon is tape reading in its purest and simplest form. Learning to Read the Tape in a manner that simplifies your thought process frees you from … Read More
What are your trades in MON? (The answers)
Non-experienced traders should not be trading MON during a conference call. Experienced traders not listening to the conference call should not be trading during the conference call. Experienced traders who do not know a great deal about MON should not be trading this during the conference call. So this was a bit of a trick question (couldn’t fool @thearmotrader). But … Read More
KISS – GD Trade
My KISS job description of day trading: “Figure out what they are buying or selling and then find an entry”. I come to the screen everyday with that thought firmly implanted and visualized. Find something they are buying and get long; find something being sold and get short.. simple. I mean even Forrest Gump could understand that. I don’t allow … Read More
If you love the level you have to reshort
Before the open we identified 55.80 as an important level in RIMM. I will let you decide how important this level was to you. But I will make an important trading point. If you love a level then you have to be willing to trade off of this level a few times. RIMM is an excellent example from today. Many … Read More
Traders Ask: When Do We Switch From Momentum to a Position Trade?
Bella, I have attached a couple plays from this week. I don’t have the the tape for them but I explain it with the arrows. I also had a quick question. Today i my worst day trading NYX. There was so much volume done in a tight range that I expected an explosive move up once the stock showed its … Read More