@Zmoose12 wrote an honest and excellent post about his negative March that left him sick to his stomach. I sat in my office yesterday listening to an underperforming trader share how miserable his past losses have made him feel. We have learned from The Art of Learning by Josh Waitzkin that we can use this anger as fuel to trigger … Read More
The Risk of Not Being In It
So we were sitting around talking about who was trading what. We came around to ROYL. Some punched it up. “Nice!” “That looks really good!” There was some talk of 6.75 kinda being a level. A quick glance at the intraday charts shows 5.65 resistance. You heard some of: “I would love to pick that up at 5.30 into a … Read More
Follow the Trend?
Stock day traders who act in sync — no matter the stock, or whether they are buying or selling — makemore money at the end of the day than their out-of-sync peers, reports an analysis to appear in the Proceedings of the National Academy of Sciences. Making its rounds on the trading twitter circuit was an interesting article about how intraday … Read More
How Many of These Trades are in your Quiver? (CCJ)
We all see the screens differently. However we all must see the screens as patterns of risk/reward opportunities that we can make our own. Below are 7 trades I might make in CCJ. Do you see your screens this way? 1) Premarket Breakdown Trade Play the downside momentum until the stocks slows. 2) The Bounce Let CCJ stop going down, … Read More
You Ask I Answer
Hi Bella: Hey young fella. Thanks very much for putting some much valuable material on your blog and website. Thxs for following us. Although I didn’t receive the opportunity of a summer internship with SMB, your website certainly provides quite a learning experience for me. Freakin SMB HR! I especially appreciate your classroom style of challenging your trainees to prepare for more … Read More
Critical Feedback on SBUX Trade
At SMB we share the PlayBooks of each of our traders. When a trader adds a new play to their PlayBook they shoot me an email with a description of the trade and the trader’s attack plan. Below is a portion of a trade description sent to me from Shark for an Opening Drive Play in SBUX. My feedback is … Read More
Using a Premarket Level (FNSR)
Not all levels are created equal. With all these technical indicators it seems that every ten cents could be a level. When we ask our guys to discuss levels we ask: on a scale of one to ten how important is that level? When we find important levels we expect a battle, and then for stocks to move away from … Read More
All that JAZZ
I trainee stopped into my office today. “Bella I think I am looking at the charts too much. Any suggestions?”. On this blog, our seminars and public presentations we are one of the few firms that talk about Reading the Tape. Recently Stevie Cohen was quoted as saying the tape is not very useful these days. So true but intraday … Read More