Yesterday we examined a trading question from one our remote trainees here. When faced with such a question often a trainee wants an answer ASAP. And for me certainly it would take less time if I just offered the answer to trainees and moved on with my day instead of asking them questions, letting them struggle for the answer, and … Read More
The Evolution of a Trading Answer (Part I)
Recently I was sent this question from one of our SMB Training trainees: On day 10, you show a video about flipping in SLM. When watching the video I could understand your thought process of entering and flipping based on looking at the tape. Nonetheless, what I could not understand when watching the video is your thought process when wanting … Read More
A Signal from the Level II
On the Open GMCR and BEC gave us a signal from the Level II, we say Reading the Tape, that they both were going down. After this signal there was opportunity to add or take a position with the side of this signal. Some time passed and then it happened. Both stocks headed in that direction of the signal. 33.50 … Read More
How We Found an Important Level (LVS)
We have identified 47.50 as an important level in LVS. Yesterday it leaked below this level and had a serious intraday downmove. Chop! SuperChop? Today 47.50 was again an important level. How did we find this level? On December 2 there was this news from briefing.com: Las Vegas Sands in 8-K filing discloses that Sands China’s application for a land … Read More
The SMB SuperChop
47.50 is a huge level in LVS. On the Open it traded below there. I hit the bids. LVS found 45.60. Were you prepared to make a SuperChop? CELG announced new disappointing news about a drug. It gapped down, showed weakness on the open and dropped like a falling knife. Did you make a superchop? If DECK breaks its longerterm … Read More
Who Believes in You as a Trader?
There is lots of talk about Coach Ryan the coach before tonight’s J…E…T…S Patriots battle. Coach Ryan is a believer in making sure his players believe. In a Bloomberg.com column the importance of belief found another sport: Speaking of winning, Duke basketball’s Mike Krzyzewski, one of the most respected and successful coaches in team sports, likes to use the same four … Read More
Improve Your Performance by Watching Yourself
One of our traders read our blog post last night on improving your performance by watching and shared some interesting additional data. This comes from the book One Second Thought: Outsmarting your Mind’s Hard-wired Habits by Wray Herbert. Psychologists used to think that perception and movement were two completely separate process, lodged in different regions of the brain. The common … Read More
Improving Our Performance by Watching
New science indicates that we can improve performance by watching. I started thinking about this while daydreaming on a pool chair at the St. Regis overlooking Hanalei Bay, one of the ten most beautiful beaches. When I was younger I was an excellent passer in the sport of basketball. I could never understand how others couldn’t see the floor like … Read More