Hey Bella, I’m a longtime reader of the SMB blogs. Trading from a home office, I miss out on all of the trading floor banter that I had when I was starting out. It is good to “connect” with other traders, even if it is only virtual. I read your book One Good Trade, while I was on Christmas vacation … Read More
What is your “move on” trading rule?
I received this review from a mentee after the close: Positives: traded well with the market. basically didn’t get short other than in-play stocks at the Open, didn’t have a short trade after 10:15 when the market established a clear uptrend. would add scalping lots to take advantage of small market leg-ups. good comeback after being down 120 on the … Read More
A Way to Find More A+ Trades
I received an end-of-the-year review from a trainee and his list of goals for 2012. It’s a great exercise for every trader and one that is supervised by our floor manager for our trainees. While reading one this norning I stumbled upon an important trading point that we have discussed some, many misunderstand, and might be able to improve your … Read More
What is your giveback rule?
Yesterday in a daily trading review a trainee wrote with disgust about giving back too much of his early profits. I really hate what I did today… basically gave back 90% of my net on the day by trading like a jackass. It just started with one bad trade and snowballed into a few more, and before I knew it, … Read More
A Conversation With Young Small Cap
This is a conversation I had today with a trainee about doing better in non-small-cap stocks. This mentee had previous success with small cap stocks while in college. During an end of the year review he made some observations and wanted to discuss them with me. Young Small Cap is an example of the very best of the people I … Read More
How do you develop conviction as a trader?
Hey Bella, I’m a relatively new trader as I’ve been trading for a little over a year now. The best plays that have the highest win-ratio for me are scalp plays. My question is, how do you know when you have enough conviction to act to execute, or consider executing, a trade on a specific stock? I understand every trader … Read More
A good trading day can be right around the corner
Your trading can get better. I sacked a trainee to the demo yesterday for sloppy and irresponsible trading. This new trader spent the day thinking about his strengths and mentally rehearsing the best set ups for his trading. This was a time out day. I have done this to this trainee before after a period of underperformance, which then preceded … Read More
Trader Denial or a Good Time to Take a Break
I asked Dr. Andrew Menaker, trading psychologist, the following question: You have a trader, a very good trader, who struggles to start December. He writes you an email saying this market is garbage and his taking an extended leave. What is your response to such a trader? Dr. Menaker responded: While it’s true that market conditions do change, it’s also … Read More