In this video Seth Freudberg discusses why he has a problem with the term options income trading. Find out why!
Trader’s Ask: Should I Use a Time Stop in Alibaba?
Hey Bella sorry to bother you again intraday. I’m very close to having having gotten ride of my over trading tenancies/urges and will start pulling the trigger on better trades2hold in the coming days/weeks. BABA though, it formed a support at 112.10 – 12.15ish. When you get long. Two questions. 1.) If you got long at 112.12 do you … Read More
Why do Proven Trade Ideas Suddenly Stop Working?
The most frustrating time in your career is losing money on proven set ups. It’s not you, it’s Me New traders grind out losing trade after losing trade because they want to be disciplined but they simply don’t have the experience to realize it’s actually the market and not the strategy. When is a consolidation a continuation pattern and when … Read More
Stop Predicting
New traders are trained by the financial media to believe that accurately predicting the market is the only way to gain an edge. Meanwhile professional traders and prop firms around the world successfully navigate the market without forward-looking analysis. Here are three over-simplified components to a portfolio strategy that do not require predictive trading: 1) Buy (long) instruments that are … Read More
The Time Stop (an Example in $YUM)
On our prop desk I encourage our traders to look for stocks that are trending, enter a Trade2Hold, and stay in the position if it is working until there is a Reason2Sell. SMBU offered a free Webinar on Reasons2Sell here. I discuss them in great detail in my latest book, The PlayBook. Below is an example of a Reason2Sell, a … Read More
Is a Time Stop a Reason2Cover My Position in GMCR?
Hi Mike, I know you are a busy guy but I had a question regarding exiting potentially wrong trades ahead of my stop point, something I’ve had difficulty with in the past. For background, I have stopped this practice as I have found that acting on my newbie instincts or interpretations of order flow has led me to cut positions … Read More
Extraordinary Situation; Ordinary Trade.
In yesterday’s post, I made a case for a bounce play in the Japanese stock market. Last night’s extreme move makes this call look kind of silly in retrospect, but I want to highlight some important points and lessons here. First of all, this really highlights the difference between “armchair quarterbacking” or “time machine trading” (as we like to call … Read More
A Trade2Hold: HAS Exit (if it trades against you)
Bella discusses where he exited his Trade2Hold short position in HAS today.