Dear Mike, Thank you for your insights in your 2 books. Given me great insight into the mentalities of the top traders and that too, of the failing trader. I’ve started learning to trade in the last year and admit that I am failing. Had gone through my journal, done backtesting on “my edge” and meditating and deep breathing during … Read More
The wrong stop (IBM)
IBM drove on the open after gapping up. At 52 week highs if you did not pay right on the open you were left to watch a 2 point upmove. I am sure many passed on the first ticks opening drive play. Flagging at 180.50 offered our easiest trade which I am sure many did not miss. At 52 week … Read More
Why Am I Getting Stopped Out More? (Part III)
How to use wicks and other traders’ mistakes to our advantage.
Can a Smaller Stop Carry More Risk Than a Large Stop?
Thinking about stops in terms of probability and expected values.
Better Stop Prices
During a group meeting a New Trader shares,”I set my stop at 75c.” I say, “Set it at 74c.” Later a New Trader discussing another stock shares, “I set my stop at 35.04.” I reply, “Set your stop at 6c.” Yesterday in The SMB Blog we asked one of our readers to consider a better stop for a trading play. … Read More
And The Real Reason For That Losing Trade Was……..?
Look at the chart above. Say you shorted RIMM below 45 and got stopped out at 45.16, develop a reason for this loss and then continue reading. Ok great to have you back with us. Today during a teaching session Bad A$$ Mike shared a trade he made on the Open getting short RIMM below 45. Steve whispered in … Read More