This is a post from our traders TO about a scalp trade he made on JBL from yesterday: My trading desk neighbor SW and I were both trading JBL today, with 19 as the key level of interest. Without knowing it, I took the opposite direction of his trade at the Open for a quick momentum scalp. SW got long … Read More
Why I was leaning short (RVBD)
RVBD opened and held the 32 bid after gapping down miserably on the open. It popped almost two points from 32 and then was dominated by an aggressive seller(s). As RVBD made a pass at the 32 level from where it popped on the Open I got long again. This is one of our favorite technical set ups. But when … Read More
A signal from the tape (RIMM)
With all things algos these days stocks rarely repeat for size at the same price. Instead of 41.70 just repeating on the offer. There is some at 70c, some at 71c, some at 73c, some at 77c as the sell algo lifts to see if the buyer will pay higher. So when find a seller selling at the same price, … 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
Traders Ask: Fake Order Flow?
Dear Bella, Thanks for writing your book as I’ve found it immensely useful! Regarding order flow, I’ve heard people saying that institutions and big traders place large buy orders hoping other traders bid in front of those orders. The institution will then sell those bids. In many ways it’s a game of cat-and-mouse that often goes unnoticed by new traders. … Read More
A Signal from the Level II
On the Open GMCR and BEC gave us a signal from the Level II, we say Reading the Tape, that they both were going down. After this signal there was opportunity to add or take a position with the side of this signal. Some time passed and then it happened. Both stocks headed in that direction of the signal. 33.50 … Read More
Traders Ask: How Do I Read the Order Flow in an ETF?
Question: Hey SMB Prop Traders, Keep up the hard work I have a lot of respect for what you guys do. I’m currently heavily engulfed in learning the in and outs of trading before committing to any positions. Something that has been playing on my mind since reading an article in the Australian Financial Review regarding EFT transactions is … Read More