Reader John asked: Mike, I just got done reading your book and I loved it. I thought it was the best trading book I have read. I have been a full time prop trader for 6yrs. and read a lot of books and found yours extremely valuable and enjoyable. Your book spoke directly to me as a very active prop … Read More
Shorting MDT
We make trading decisions based upon three factors: intraday fundamentals, Reading the Tape, Technical Analysis. I traded MDT today using all three to start two shorts. These are trades that if I made 1000 times I would profit. Intraday Fundamentals We trade stocks with fresh news. Today we had new news with MDT: Co issues downside guidance for FY11, sees … Read More
HPQ BIDU and some JAZZ
Well its slow out there. This AM there were only a few stocks with fresh news. JAZZ was one of them. HPQ and the proposal of them potentially buying PAR was another. So I traded both. As I write I am also short BIDU. Let me share my thinking. JAZZ From Briefing.com: Jazz Pharma shares trading 30% lower following Friday’s … Read More
First Team Wall Street: The Next Generation
Give me six hours to chop down a tree and I will spend the first four sharpening the axe. — Abraham Lincoln An extensive FX training program is being created for a college investment club as I write. The creator is a junior in college. A bright young trader visited SMB from the Midwest for a tradecast during summer vacation. He … Read More
My CREE Trade
About two hours ago I tweeted: $CREE near 60 huge R level @biggercapital responded: would like to hear your what if scenarios RT @smbcapital: $CREE near 60 huge R level And then came @readerfinance: would like to hear your what if scenarios RT @smbcapital: $CREE near 60 huge R level: would like to hear your what… http://bit.ly/dodYtu At SMB we … Read More
Traders Ask: Must I Learn Opening Drive Plays?
“I never think that there’s something I can’t do, whether it’s beating my opponent one on one or practicing another hour because something about my game is just not right.” Earvin Magic Johnson Hey Bella, Hope you are enjoying this gorgeous weather! I know you are probably being bombarded with e-mails because of your new book (which I am … Read More
Traders Ask: Was that the Real Trade?
Yesterday I wrote a blog post stressing the importance of making the real trades intraday. One of our very experienced traders sent me this question: i traded JWN today… why did you want to buy above 32 when it had just closed the gap and showed no signs of holding support? to me, that’s a trade that flies in the … Read More
Where is the Real Trade?
As intraday traders we can be guilty of overtrading. Before the open and then intraday I ask myself: where is the real trade? SPY today? The real trade was to short near 109. You could make up other trades but that was the real trade. JWN? The real trade was buying a pullback when it spiked above the 32 level … Read More