For the past week or so we have been on the look out for the turn on the market. We are currently a bit overbought and it seems that the turn could have started today. We had a very nice steady sell off and based on the price action we could tank tomorrow. If the SPYs start to hold above … 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
Learning to Let Go
One of our talented young remote traders sent me the following email a few days ago and I thought this was an important topic to address. Below is his email: Gman, I had a hell of a time with ACN this morning. There were a lot of screw jobs, and fake outs. The price action was very choppy and it … Read More
Tuesday Morning Fun – Excessive Celebration
On our desk we frown upon excessive celebration after making one good trade. Many get in an excited mental state which causes them to make several bad trades in a row. One of our traders found this link this morning. This is clearly an example of excessive celebration. Wait for the score at the end of the clip. http://video.yahoo.com/network/100284668?v=4656506&l=4418225 Enjoy. … Read More
Percentage Returns for Day Traders?
A couple of days ago I received an email from a blog reader inquiring about my performance for this year. And often times we are asked during interviews what kind of returns we generate. Almost every day I see on Facebook and some blogs people posting their percentage returns for a particular stock. Individual investors among others judge their performance … Read More
Note of Caution On Trading Systems
On my way to San Diego I began reading The Black Swan by Nassim Nicholas Taleb. I am still working on the book but I wanted to share some thoughts that can relate to trading. The author discusses how it is in our nature to use past instances that corroborate a hypothesis and use that as evidence to prove … Read More
Being Too Cute
Yesterday I made a silly mental mistake on the open that cost me my morning. I was expecting a small downtick on the open before the rally so I tried to get too cute. I shorted GS on the open. I was trying to catch the first down move so I could have plenty of leeway for my long for … Read More
Reloaded and Ready to Trade
I struggled for a couple of weeks and found myself going back to my old emotional habits. Bella reminded me at the expo a couple of weeks back that I tried quitting the firm after struggling after my first five months trading live. Steve helped me turn things around by working on my emotional rants: banging, cursing, bitching, etc. The … Read More