Standing in Front of a Freight Train

I am not sure why but too often traders fade moves like yesterday into the Close. The market bounced over 800 points during the last two hours of trading. I was talking with an experienced trader after the Close and came up with a theory. Traders tend to miss the beginning of bounces. The market has been weak. The market … Read More

Last 15 Minutes

Large movements generally start more than 15 minutes before the Close. The last four trading days we have seen very explosive moves in the last 15 minutes of the trading day. Today we tanked right before the Close. The last two trading days we have seen significant downmoves. The two trading before that we saw significant upmoves. Today in the … Read More

Expectations

Expectations can be harmful to your trading. We ask all of our prop traders to set goals for themselves. I do for myself. Whether its for my trading or our trading firm. As John Wooden says,”make each day your masterpiece.” But goals often for the new trader are incorrectly results based and not process based. And I want to take … Read More

Answering A Couple of Questions

Here’s a list of blogs I read: http://www.bloglines.com/public/gualbertodiaz Stock Selection: Over the last few weeks I’ve been sticking mostly to trading AAPL, SPY, and almost any financial that i felt comfortable trading. Stocks that I have also been looking are S&P 500 stocks trading near 52 week lows. I’ve been focusing on trading them on the short side, since I … Read More

AAPL Earnings—Oy Vey!

As you gain more experience traders develop biases about stocks and where they should be priced. Often this is helpful. At times it can lead to potential rips. As an experienced trader I have learned that my biases must be verified by the Box, the price action in the stock. Who am I to decide where a stock ought to … Read More

Think About Your Trading

After the Close I was talking with two veteran traders. Both trade with us. Both are very wealthy from years of successful trading. You know how the NBA named its 50 best all-time players? Well one of these traders I describe as one of the 50 best day traders of all time. He actually taught me how to trade. Though … Read More

Weekend Preparation

The past few weekends, I’ve been coming into the office to prepare for the next week of trading. Generally I do this at home, but when I need to get a lot of work done, I’ll come into the office to do it. Since I feel like we’re at a turning point in the market, I’ve been doing some more … Read More

What to Trade These Days

As Bella pointed out, last Friday was difficult. There were so many reversals that it was frustrating to trade any stock. Market stocks overreacted to moves in their corresponding futures and levels were not respected. I lost on so many fade trades in which I would buy a stock that quickly retraced to a support level and continued going lower … Read More