First Control Your Risk

BellaMike Bellafiore's (Bella's) Blogs5 Comments

After the close a new trader shared his frustration with stop outs in FCX. His solution: ignore his predetermined stops for if the stock traded against him (let’s call him MC Trader). This is how you end up at a new job.   MC Trader set a stop in FCX for 66c. FCX traded past this price but MC Trader did … Read More

Goals for 2011

BellaMike Bellafiore's (Bella's) Blogs6 Comments

This weekend we asked our traders to craft a list of goals for 2011.  This is an exercise every serious trader (person?) should complete.  When you create a picture for where you want to be by the end of the year it helps organize all that needs to be done to get there.  Create process and results goals. Here is an … Read More

A Signal from the Level II

BellaMike Bellafiore's (Bella's) Blogs1 Comment

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

The SMB SuperChop

BellaMike Bellafiore's (Bella's) Blogs2 Comments

47.50 is a huge level in LVS.  On the Open it traded below there.  I hit the bids.  LVS found 45.60.  Were you prepared to make a SuperChop? CELG announced new disappointing news about a drug.  It gapped down, showed weakness on the open and dropped like a falling knife.  Did you make a superchop? If DECK breaks its longerterm … Read More

In a Market of Volatility Hidden

BellaMike Bellafiore's (Bella's) Blogs1 Comment

Yesterday I was a panelist at High Frequency Trading World USA 2010 in NYC where we discussed HFTs effect on market volatility.  Some are concerned that a market overly volatile will scare investors from participating in the market.  Since HFTs are our modern middle men, perhaps market maker rules should be considered for them.  This is an idea worth exploring but will not change … Read More