I was trading HPQ this morning on the good guidance they provided. I traded the stock pretty well in premarket and was able to build a pretty good cushion for the open. I normally do not trade this stock as it is too thick and doesn’t have enough volatility. Today however it was up almost $4 on the open and … Read More
A Fade Trade
During our video review session intraday today we watched some tape of TGT. One of our experienced traders, NYU, faded TGT into its second upmove on the Open at 33.75. There was a struggle at 33 and the buyers won sending TGT quickly to 33.80. NYU thought the move was overdone and got short. This was a poor fade trade. … Read More
My Case For A Market Bottom
I think Thursday may have been the lows we may see this bear market. Obviously, nothing is 100%, but I’m seeing things that have made me feel a little safe to start getting long at these levels. And if we break these lows, I really don’t know where support is. But I think the risk/reward is worth getting long at … Read More
Playing for UConn
One of the hardest things when you begin trading is focusing on what is important. At most firms there are leader boards in full view. On your screens it’s impossible to miss your P&L. But it takes about three years to become a great trader. And you can’t make a ton of money until you have developed significant trading skills and learned … Read More
Find the Easy Plays
Trading is a tough profession. Every day you need to figure out a way to make money. During the first couple of years of your trading career it is important to be in the easiest plays. One such play involves getting long above a recent support level in a stock. The more recently the level was important as support the … Read More
Reviewing Your Work
I was out on the West Coast interviewing some candidates at UC Berkeley last Friday. It sure was nice out there! Mid 70s in the middle of November, really? Oh boy do I miss that awesome weather!. One of the interviewees with a bit of experience in trading his own account asked me a question that I thought was interesting. … Read More
Flat Before the Number?
After the Close our desk had a spirited debate about whether a trader should have a position before an announcement (in this case the oil and gas number). On Tuesdays we meet after the Close to watch video of One Good Trade produced by a few of our experienced traders. One of our most improved traders, let’s call him MIT, … Read More
GS: Too Hard?
Most new traders should not be trading GS. GS is a very difficult trading stock. The spread is 30c to 50c. It reverses often intraday. There are programs that make it difficult to hit new lows. Trading with size is near impossible. Only the very best of set ups are profitable. GS is broken. And it has been since it … Read More