Here is a case study on one SMB Trader struggling with his psychology. I’m sure many readers have experienced the same struggles. We end with a plan to solve this psychological issue for this trader. SMB TRADER: I’m really disappointed. This was bad. Probably the most disappointed I have been in myself in a long time. There’s no reason, no excuse, … Read More
Focus on Building Your Trading Position: Embracing Long-Term Strategies (VVUS)
Hey Bella, I was reviewing my trade from VVUS today, and there were two things I forgot to run by you that I was thinking about during the trade. First, I used our discussion on the steepness of moves to help me stay in the trade. I have had problems with past trades where I would get into a position, … Read More
Should you quit trading?
Hey Mike, How are you? Everything at SMB going well? Life outside of work is good? If you have the time, I could use some advice. I have now been trading about 10 months at (firm deleted) and learning from one of the best traders. For our style of trading, the firm as a whole finds this to be one … Read More
Tape Reading Was Money For This Play
On Thursday I was short MCP because it was trading below its two day support of 22.20. The market was having a trend down day and I was very comfortable holding the position until the close. But then something changed on the tape. There was a 100 share bid on ARCA at 21.20 that was being hit and continued to refresh … Read More
Trade Execution
Hey Mike, I had a quick question with regard to order execution style and what orders you use. I know that on our keyboard, we have presets for ARCABidTier and ARCAOfferTier that are limit orders and the custom SWEEP keys that are market orders that process 3c through the bid or the offer. Although I’m working on my keyboarding skills … Read More
Traders Ask: What is a Competitive Trader?
Question: I hear a lot about the value of a competitiveness in trading success. Analogies are made with the striving for peak performance seen in athletes and entrepreneurs. One thing about this puzzles me, and I’d appreciate the thoughts of others with more experience and success. When I trade I am trying to get better: to make good trades and, inhibit … Read More
I felt a rip coming
I caught a scalp for the first downmove in DSW. I caught the upmove from above 52.12 to near 53. And I caught the downmove from below 52.50 to 51.65. I looked at my PnL and I was barely positive. How is that possible? I was not trading DSW on the open with size as it was so early and … Read More
One day on the street with a professional trader
In the article Book Takes a Look Inside Professional Day Traders, national columnist Joel Stein is spotted $100,000 to try his hand at professional intraday trading for one day. Matt Nadell, @tradecrushers, a guest blogger at SMBU Blog, in Chicago gives Joel a taste of the nerve-wrecking excitement that trading can offer while teaching him basics along the way. Highlights: … Read More