I talk to traders all over the world and it surprises me how many “high probability” or “market neutral” traders don’t realize that they are making a statement with their position. By making a statement I mean whenever you enter a position, you are defining the conditions under which you will win and which you will lose. For example, when … Read More
My Thought Process: $BHP
BHP was gapping lower and trading very actively in the pre-market. This message was to highlight it would be one of the best stocks to trade on the Open and my bias would be informed on which side of 78.50 it started the day. I initiated a short right on the Open against a 78.36 seller. This was the first … Read More
Should Short Term Traders Consider News–Part III
On Friday I was chatting with a non-SMB prop trader that I trained several years ago. He was long DLTR when the WMT “news” broke around 2:00PM. From the chat messages you can see that we were in agreement that there was a short term “fading” opportunity in the retail names that had been quickly hammered based on a leaked … Read More
Should Short Term Traders Consider Fundamentals–Part II
In Part I of this series I discussed whether understanding the news could help short term traders limit their risk on overnight positions. Today’s post discusses whether understanding the news gives a short term trader a possible edge in determining profit targets and when to exit an intraday position. As examples I will use two trades that Sammy, an SMB … Read More
Should Short Term Traders Consider Fundamentals? Part I
I believe the majority of market participants agree over longer time horizons fundamentals will influence the price of a stock. But what about in the short or medium term? Should intra-day traders or swing traders be evaluating fundamental news related to the stocks they are trading? Or should they simply focus on price action in relation to news? I have … Read More
Forex Road Map
Marc Principato, CMT records a trade setup as it happens on the S&P 500 CFD instrument. This is an example of how the traders in the SMB Forex and Futures program manage emerging opportunities. It’s like having a road map. Can you see the value? — Marc Principato, CMT Risk Disclaimer *No Relevant Positions
The #NewNormal and $SPX 1680
I was on BBC a few days ago to talk about the market’s reaction to the “fiscal cliff” legislation. I had hoped to use the opportunity to spend some time clearly outlining a concept I discussed in my final webinar of 2012. The BBC economics reporter prattled on longer than expected so I only had about 60 seconds to outline … Read More
Should This Trader Make a Comeback?
Below is an interesting trading anecdote I received via LinkedIn. I asked the writer if I could share his trading experience with our community. He agreed. The names and places have been changed for compliance reasons and we have no interest in saying anything negative about anyone or any firm on this blog. What I find interesting about his note … Read More