Yesterday we had a loud, unscheduled coaching session with the newest traders on our desk. There were raised voices and language not suitable for network TV. By my count this was the third time these newest traders did not meet an acceptable level of AM preparation. I am not suggesting they did not prepare. I am not suggesting they did … Read More
Unleashing Potential: Empowering Traders through Desk Training
Yesterday a 30 year market veteran, who has been a part of our trading community for years, stopped by to visit. He has been struggling with his trading and felt something was just missing. He wasn’t sure exactly what. His visit and our discussion about his struggles became so interesting to me. This retail, developing trader was struggling with the … Read More
5 Lessons from the Prop Desk
I was grateful to be asked by my friend, JC Parets (@allstarcharts), to present at Chart Summitt 2017. My mandate? Share 5 lessons from the prop desk. As always, I love to include anecdotes from traders succeeding on our desk to teach. And I did so again here in this online presentation. My 5 lessons from the prop desk were: … Read More
I like this trading pattern in Mattel ($MAT)
I like this trading pattern in $MAT: a) stock gapping down b) stock with a negative news catalyst c) fight on the tape where the seller wins d) holding below VWAP e) no longer term technical support in sight f) staircase stepping down visually on our charts g) hold short for a real move We have this pattern today in … Read More
Exploring a Newly Stressed Trading Strategy on the Prop Desk
A tight wedge pattern for Stocks In Play is favorite trading strategy newly stressed on our proprietary trading desk. Two chart examples of this trading pattern were seen just yesterday with ATI: and CSX: I prefer when these wedge patterns appear in a Stock In Play- something with a news catalyst behind it. Breakouts from these wedge patterns work best … Read More
Competition at a prop firm fuels increased PnL
People often ask ne the value of trading at a prop firm. And there are many value adds that a prop firm brings to a trader, but I want to focus on one powerful performance driver. Competition! When SMB first formed a JV with the Kershner Trading Group our younger traders were in awe at the PnL numbers of the … Read More
3 ideas to improve waiting for your trades
Yesterday I wrote about the #1 trading frustration of top traders on our prop desk. (#1 issue top traders want to fix in 2017 on our prop desk.) Today let’s offer 3 ideas to solve this frustration: 1. Journal your progress on waiting for setups. When are you successful waiting for setups? When are you early to enter and why? … Read More
The first test for a new trader
You get hired for June on a trading desk. You take The Foundation, a 6 week course. You learn everything you didn’t learn in school, the internet, blogs, cable TV (just kidding), your uncle, and/or trading gurus about the markets necessary to place professional trades. Then it’s on to Trader Development where for the next 6 months you experiment with … Read More