Blackboxes/Algorithms Nothing to Fear

I received a GChat message from a future trader, Carter, who was interested in the impact of blackboxes or algorithms on intraday trading. I have heard Carter’s concerns from other future traders. Some believe that blackboxes will rule trading and eliminate the intraday trader. A few thoughts: 1) I have heard this argument for the past 5 years and I … Read More

A Bet That Paid Off

My primary focus for the past few years has been making money intraday.  But occasionally I observe a pattern that causes me to take an overnight position.  Around 10:30AM on Friday FNM had a very powerful breakout through $12.  It topped out around $14.  During the afternoon there was some selling and it traded as low at $12.40.  But during … Read More

Plays to Add Size

One of our traders, CBA, made a chop in HON into the Close. And even better CBA got me into the play as well. I like that excellent communication at SMB Capital. CBA is a conscientious trader. He watches tapes of his trading over the weekend (I saw him this very Saturday watching such tapes in our office), keeps a … Read More

She Just Might Say Yes

Steve and I went to our 20th high school reunion last night.  A few things: 1) they served chocolate chip cookies for dessert and I ate as many as I could until there were no more (delicious!); 2) I witnessed another great example of she just might say yes.  For those on our prop desk in NYC she just might say yes … Read More

Earnings Season Has Begun

Our playoffs have begun- earnings season.  This is the time where we as prop traders make most of our money because there is so much price action.  Interestingly, there has been tremendous price action in the financials and energy sector recently before these playoffs.  Hence a dilimena.  What to trade?  Do we stick with the energy and finacials stocks that … Read More

Small Tier Size Can Equal Large Profits

I meet with a ton of potential future SMB prop traders.  Obviously there is a great deal of interest in those who wish to trade with us.  Hey that’s part of my job.  Luckily for me I get to screen everyone who walks in our doors.  So I enjoy most of the interviews.  There have been a few two minute interviews.  … Read More

Rally Monkey Come Out and Play

Today we saw good strength on the financials with our money maker WFC leading the market. It was definitely a good stock to watch today on the open. It was a bit sketchy into the close and it made it easy to churn away profits in the middle of the day. But overall if you stuck to buying and selling … Read More

XLE Levels

The past two trading days there has been tremendous price action in XLE, crude, and related equities.  I am not an expert on energy but I do know that 80 and now 77 are very important levels for XLE.  Below 80 and 77 and you should look for weakness in the energy stocks.  Above 80 and 77 and you should look for strength.  Below … Read More