A few days ago I was leading a conference call of some remote day traders. One of the questions was: “How do you determine when to try a trade more than once at a level”? I simply answered: “When the risk/reward says it’s okay.” Playing whack-a mole at a level can be frustrating and you have to be careful that you … Read More
SLW 40: Opportunity for the Skilled Trader
I was walking the trading floor, making my rounds, when a trader motioned for my opinion. “Bella what do you think of SLW?” “Looks weak intraday. Where is the next support level?” The trader searched his longer term charts and muttered,”40.” Guess where the stock was near? 40.40 but heading towards 40. I asked, “Are you going to get long … Read More
Don’t Worry, Be Happy… Take The Loss
When was the last time you got a paper cut? Do you remember? I’d bet you struggle to come up with the time and place. Exactly, you forgot. Keep your losses like paper cuts so you can forget about them and continue working. Paper cut losses are simple, effective and essential. Novice intraday traders need to understand the importance of taking paper cut … Read More
Traders Ask: How do you find levels “you love”?
Hi Mr. Bellafiore, I read your book and have been a daily reader of the blog ever since. I especially appreciate your and Adam Grimes’s posts. I trade the e-mini (ES) but would like to trade more stocks if I can figure it out. The recent post on execution was pointed. I suspect the difference in the trader who was shaken … Read More
The Good Trading Stress
When “professional stress” is your problem you are leaving the ranks of amateurs. Are you a stressed out day trader? I am and I couldn’t be happier. I have worked long hours to get to this point. I have spent literally tens of thousands of hours at the screen to attain this stress. Sounds crazy? I don’t think so. A … Read More
Give Yourself Time
Got back from a run. Yeah, this Georgia Tech campus is very nice. Had a mocha frappachino from Starbucks (I do not even know what that is and I unordered the size three times) to help with my 4am wake up call. Walked the room for my presentation. I like to get a feel for the room and see myself … Read More
Execution, Execution, Execution (BIIB)
Trader A sits looking at the consolidation in BIIB. We have some nice consolidation. BIIB is above the highs from the first day gap up. There is no resistance above in the near term. Should I pay 80? Trader B sits looking at the consolidation in BIIB. We have some nice consolidation. BIIB is above the highs from the first … Read More
Simon Says Simply Read The Tape
Day trading profitably requires Reading the Tape. Reading the Tape is a skill. It’s a skill that can be learned. However, it doesn’t always come easy to the beginning or underperforming traders. Listening to Simon is tape reading in its purest and simplest form. Learning to Read the Tape in a manner that simplifies your thought process frees you from … Read More