That’s NOT a Short!

Yesterday one of our most improved traders was trading GS.  Great stock to be in.  Great job of being in when many were taking off.   This talented young trader, let’s call him MROD, developed a detailed trading plan for GS.  MROD saw that 80 was resistance on the longer term chart in GS, remembered that the last time it … Read More

ROH Bounce

ROH tanked on the Open yesterday. Fading it on the long side was like trying to catch a falling knife. And many of you have heard the Street expression “don’t catch a falling knife.” These tank jobs in ROH happen everyday. As we discussed during our SMB AM Meeting, it is a mistake for a new trader to try and … Read More

Holiday Trading

I did it again. I do not know what is wrong with me.  I definitely have a problem.  I had about 15 cookies last nite. Delicious! I just can’t stop. If I eat one then I will eat 15. I went to three XMAS parties this week. That was one too many. I did not trade very much last week. … Read More

Learning from “Outliers”

One of the great lessons of trading is how little you know. You must constantly learn. I have to admit I didn’t quite understand what a credit swap was till recently. I was in an interview with a very bright young woman who explained to me what she did as a credit derivatives trader. I didn’t get the whole thing … Read More

Why Trade Stocks in Play?

SMB Capital trades Stocks in Play. Our traders are taught how to find such stocks. And during our SMB AM Meeting we review the best Stocks in Play for a particular trading day. Over the past few years I’ve had quite a few conversations with interviewees, including “experienced traders”, about this core trading philosophy. Some don’t seem to grasp the … Read More

Build from a Base

Those who trade wish to make a lot of money. Traders are not trying to make $200 a day. They want to make much more. And often traders are ambitious. And they have rarely failed at anything they have done before. Perhaps they have been told their whole life that they were special. Most are the smartest person in most … Read More

The Right Daily Stop Loss Amount

There is a fine line between failing and making it as a trader. Whether you trade with a prop firm or trade for yourself it is important to have an appropriate stop loss. Having too small of a daily stop loss will keep you out of the game too many times and will impair your ability to grow as a … Read More

What if I am Wrong?

I made some chops trading RIMM afterhours yesterday. More importantly I learned important levels. A ton of volume was done at 41 and 41.40 was a huge seller. Today my game plan was to aggressively buy if RIMM traded above 41.40. I was wrong. I had expected RIMM to fly after it held above 41.40. It didn’t. There was a … Read More