AIG, our favorite momentum stock got back in play yesterday off the breakout at $14. I traded it okay yesterday though I didn’t make that much money off the initial point and change move after being long from 13.8. I actually made most of my money off the two consolidations at 16.4 and 18.65. I am still puzzled by the … Read More
Seen That, Traded That: AIG
“Have you ever seen anything like that?” asked a new trader. “The news isn’t new,” chirped a trader on Day 18 of his trading career. “AIG traded up from 15 to 23 and I barely made any money how is that possible?” Let’s discuss AIG and all the plays that will be like AIG going forward. 1) There will be … Read More
Repeating Patterns to Exploit
One of our new traders in the June class asked me about what I review when I watch my trading video. The short answer: patterns that offer clean trades where I can be aggressive. When I review my work and I see patterns that offer these clean trades I brand that opportunity in my head. Let’s take a … Read More
Every Cover is a Bad Cover: SYNA
Back in the day I used to think that every sale was a bad sale. Inevitably internet stocks would somehow find their way higher. And then came subprime. Followed by its evil twin the near recent collapse of our banking system. And during this historic trading period at times every cover was a bad cover. And yesterday I battled a … Read More
High Frequency Trading
In light of all the recent commotion about high frequency trading (HFT), we have decided to compile a list of articles that depict the advantages, disadvantages, as well as arguments for and against HFT. The list follows below: Stock Traders Find Speed Pays, in Milliseconds: This is the original exposé by Charles Duhigg in the New York Times What’s Behind … Read More
FSLR After Hours
Some great action in FSLR after reporting today. It immediately drove up from 175 to 187. There was a pullback to 180 where the bid momentarily held before dropping out to 179. Before you could blink it drove up to 190. This powerful drive got us to start thinking about where to buy on a pullback. Gman was thinking 185 … Read More
Keep It Together
Panic is not a good thought for a trader. And during really crazy moves in a stock, when you may be tempted to panic, calm is required. I had such a situation on the Open with MHS. Let’s discuss. So we start the day and Alexander gets me into this MHS. I wanted to trade something else but he just … Read More
A Bad Day
As traders some days we just won’t have it. During the last two training classes at SMB our best students have been female. For some reason only about two percent of the resumes sent to us originate from women (how do we get more?). A leading female student in our present class finally had a negative trading day in her … Read More