Bella, How do you distinguish between patience and complacency? Patience is what I call it when I’m riding a trend. Complacency is what I call it when price initially goes my way, but then retraces and eventually stops me out. This happens to me most in two cases. In these cases I feel as though more aggressively taking profits would … Read More
Why buying a stock at a higher price can be better
I received this review from a really solid young trader. There are two important trading lessons in his thoughts. Can you spot them? Biggest regret today: not using the information I collected on ITMN as a short. I was watching above 17, I had a long bias, but I chose not to buy it because of what I saw. The … Read More
Are You an Overconfident Trader?
Hi Mike, I’ve been trading awhile and I’m certainly getting better at it. I’ve noticed a recurring problem. Whenever I get a good streak going and I start feeling like I’m getting the hang of it, I hit a losing streak. Sometimes it’s a week or two of gains everyday and then a slow meltdown to give it back. I … Read More
Do not spend time mastering the shakeouts (VLO)
Hey Mike, Hope all is going well since we last spoke! I had a quick question for you that I knew you would be able to answer with ease with regard to watching the tape and getting shaken out. I’ve been trading on the LightSpeed simulator to better prepare myself for this summer when I take part in the 5-week training … Read More
Some Help for the Impatient Trader
Greetings from Singapore. Today is my last day here in the new gateway to Asia. I have a day packed full of some more learning meetings and then take a 2:30 AM flight to Johannesburg, South Africa. I arrive in JNB, will shower and then head to meet some top South African traders. I have been tasked to talk about improving … Read More
Nasty Is As Nasty Does
On February 7th we discussed CSTR in the AM Meeting. It was gapping higher on a better than expected earnings announcement. But the price action in the pre-market was erratic. There were no clear pre-market trends and when it moved above/below s/r levels it would quickly reverse. This is a stock that I will not touch on the Open. Stocks … Read More
PEP refreshing on the open trade
PEP (Pepsico, Inc.) offered an easy momentum trade on the open. INTRADAY FUNDAMENTALS PepsiCo fell 4.3 percent to $63.87 at 9:57 a.m. in New York. The shares rose 1.6 percent last year, while Coca-Cola gained 6.4 percent. Fourth-quarter net income advanced to $1.42 billion, or 89 cents a share, from $1.37 billion, or 85 cents, a year earlier, PepsiCo said … Read More
Make this losing trade (YUM)
Yesterday in YUM I made One Good Trade which was One Losing Trading. On the open YUM settled in a battle 64.80 by 65. Young Leo called out the fight and I took notice. Also YUM was In Play showing premarket strength and gapping up. YUM broke above the opening range battle and shot up to 65.70. This was a … Read More