A Conversation with Yourself

I received an email from a trader who is a superstar at reviewing his work. Below is an email he sent to me this weekend…..I  need to slow things down and do exactly this: 1) [keep doing exactly what I’m doing, in preparation, in hard work, in planning trades, sharing ideas, and reviewing work] 2) have more patience so that … Read More

Some Interesting Links From the Past Week

From the people who brought you FAZ and FAS, Direxion, has launched triple T-bond ETF’s.  It’s currently very thinly traded, but so were FAZ/FAS when they first started.  I think these will become increasing more liquid, and will provide equity traders with an opportunity to trade bonds for volatility swings on the release of economic numbers and Fed meetings.  Definitely … Read More

A Trade to Increase Your Stop Loss

One of our better traders asked me a follow up question about trading HOG into the Close. As you may remember I blogged about a HOG Trade to Hold from 18.50 to 17.90 into the Close yesterday. This excellent trader struggled with HOG in the AM. He asked about the adjustments that he could have made trading HOG. Let’s discuss. … Read More

Relative Weakness- HOG

Relative Strength is a trade taught on most desks.  When you notice the market is weak and a stock cannot go down, this shows relative strength.  Conversely when the market is strong and a stock cannot go up, then we conclude it is weak.  Today we saw a relative strength play in HOG.  Let’s discuss. After 12PM SPY was strong. … Read More

Attention All RIMM Traders!

I love trading RIMM.  Not because it was my most profitable stock in 2008.  Well maybe partly.  I love trading RIMM because it is one of those few stocks that all the major players on Wall Street trade.  Hedge funds flock to RIMM when the market is moving.  As do mutual fund managers, professional traders, and retail brokers.  With so … Read More

Quick Nighttime Thoughts – The Turn On The Way?

The market has been offering a few clues about a possible pause in the rally run we have had over the past 4-5 weeks. The financials have been a leading sector and I wanted to point out a few things. As I discussed in our AM Meeting, there seemed to be a blow off top in the XLF and IYF … Read More

From the Mailbag: Scalping and Stress

I received this email today, which I would like to discuss. Mr. Bellafiore, I enjoy reading your blog. Thanks for sharing your knowledge! I have a question regarding anxiety/stress when reading the tape. I find that this method of trading is much more stressful for me than say, trading patterns off a five-minute chart, primarily because it is faster. How … Read More

Loading Up

One of our better traders stopped into my office today to discuss WFR.  He was curious where I started buying into its upmove on in the AM.  The conversation shifted to loading up in WFC.  We discussed good places to load up in WFC on Thursday.  Let’s discuss. Developing traders often assume that the best place to load up on … Read More