A Great Day for Two New Traders

Yesterday was a great day for our prop trading desk. My partner and our head trader killed it. One of our new traders who was a former Olympic trial swimmer put up a huge day. And on and on and on. But I want to highlight two of our new traders because we can all learn from them. For those … Read More


During our AM Call we remarked that FNM or FRE are not good stocks to trade today for new traders. There is a very high likelihood that the government will announce a bailout plan and the stocks will get halted. You do not want to be in a position on either side if they are halted. The gaming stocks, LEH, … Read More

The Right Stocks

A trader is only as good as the stocks that they are trading. Recently, a bunch of guys on our desk have made money trading CHK and HK. They were making nice chops every day. Sometimes its hard to let go of stock that you have been consistently making money in. But it is essential for this job to recognize … Read More

Take Advantage of this Opportunity

Our new traders love to hear “back in the day” stories. You know the late 90’s when day traders were making 6 figures a month. What was the most you ever made in one day is a frequent question. And I tell our prop traders the story about when the Fed cut rates surprisingly intraday by 50 basis points. Now … Read More

Allure of the Fast Mover

So while reviewing my day’s trading film with a senior trader and a group of young up-and-coming millionaires, I was caught taking a position in a “fast mover”. I characterize a fast mover as those times when you can buy a small amount of shares (or large, if you possess the dinero y cajones) and possibly catch a point or … Read More

Times are hard

Market Overview Looking at this picture makes me sick. There are very few days when you can see almost every sector in the red. If that’s not a sign of a bear market I don’t know what else is. I do have to say that I was not expecting that kind of sell off today. In fact, if you listened … Read More

Are You Making Money?

We teach our day trading desk, SMB Capital, in New York City to check to see which stocks they are making money in.  I supposed a new prop trader reading this might say, “How could I not know that? Or that seems like a complete waste of time.”  You would be surprised.  The human mind is a funny thing.  It does not … Read More

Missed Opportunity

One of the things I take great pride in is understanding the potential moves that may occur on any given day. This applies equally to stocks that I may be trading as well as the market in general. Today, I was unprepared for the large bounce that occurred in the market during the final 90 minutes of trading. Currently, US … Read More