Wednesday after the Close we brought our traders into our training room and started talking about a game plan above SPY 134. A profitable trader is first a prepared trader. The market was consolidating close to this level. Above and the market might run. Towards the conclusion of our meeting I asked all of our traders to send to each … Read More
The Thoughts of a Professional Trader (OVTI)
Here are my thoughts trading OVTI on the Open 7/6/2001. 1. Opening Drive Play. OVTI gaps down with fresh news. During our SMB AM Meeting Steve mentioned OVTI starting to move that he found from the SMB Scanner. This is a very cool new tool which we built for our desk that shows the stocks we want to consider before the … Read More
The Thoughts of a Professional Trader (BIDU)
Here was my thought process in BIDU today. 1. BIDU is below the important Premarket support so I am looking for an Opening Drive to the downside. I feel very smart after the 3 point downmove. 2. BIDU bounces after it fills the gap but I find an area of intraday R. I feel very smart after finding this level … Read More
The Trend Trend Trade
I am officially naming a new trade. SMB will call it the Trend Trend Trade. Below we explain through the trade of one of our traders, Shark, reviewing a recent trade in LPS, using the SMB Playbook template. The Trend Trend Trade is a set up where the long term trend and the short term trend align. We look for spots … Read More
Katz’s Korner: Do Traders Need More Testosterone?
I received this email from a new trader: You’re probably already aware of this correlation between testosterone and performance as it relates to trading. It’s interesting to consider though as direct empirical evidence for the notion that Division I athletes have a proclivity to be good traders, e.g., Adam Guren. It’s something I tried to keep in mind when I … Read More
Trading Thought of the Day – June 15, 2011
You shouldn’t create rules at a trading firm unless you first get buy in from your traders.
You are trading patterns not opinions
I was hanging inside my office working on a new business idea for retail traders when the email below hit my inbox. I spent some time showing our new traders how you trade P in Real-Time, which was the catalyst for this ping. After P failed to hold 23 and then for the first time all AM held the offer … Read More
The unprofessional summer trader
This is the time when all the tweets and blogs start about hitting the links, or grabbing drinks early, or heading for the beach. If you have ever traded prop at a big firm you will see seats empty on Friday after 1pm. There will be many who do not come back from lunch on a Thursday. Missed Mondays and long … Read More