Picking Your Tier Size, Part II

In my last entry last week I presented an simple yet powerful approach to picking your tier size based on the risk you take on a play. Furthermore, the blog entry describes how to go about picking a tier size that works well independently of what kind of stock you are trading any minute of your day. In this entry … Read More

Buying into a Pullback

EL was a good trading stock on Friday.  EL traded between 24.60 and 25 for most of the Open.  Then on higher intraday volume EL broke above its resistance level.  EL traded up towards 26 and then stalled.  Let’s discuss how to buy EL into a pullback. This is a stock I want to be long.  It broke above intraday … Read More

Get Your Game Back

Happy New Year. I have been battling some sort of an “on again off again” stomach virus since Christmas that has made me miss many days of trading over the past couple of weeks. But after returning to trading, I have found myself struggling. This gives me a perfect topic with which to start the new year. How to combat … Read More

“How Did You Know to Bid There?”

We are always instructing our traders on the setups that present the greatest risk/reward.  If they are involved in these setups trading will be easy.  If not they will struggle.  I pointed out one such trade to our newest group of trainees. I was trading AAPL on the Open as it was very In Play due to Steve Jobs taking … Read More

The Cheetah and the Trader

I had an interesting conversation with a young trader from another firm today. This young trader pops into my office from time to time and talks trading. He is a very bright and competitive young man. And he is struggling. He killed it in October. But over the past two months he has dug himself a huge P&L hole. I … Read More

Trading AAPL After Hours after Jobs Announces Leave

Steve Jobs announced his leave of absence from AAPL after the Close. AAPL was halted. At 5 PM it resumed trading. Here was the news from briefing.com: Apple CEO Jobs announces medical leave of absence until the end of June (85.33 -2.38) -Update- Apple CEO Steve Jobs today sent the following email to all Apple employees: “Team, I am sure … Read More

The Shakeout

When I am trading I do the right thing.  I am not concerned with my results.  If a stock is a buy then I buy.  If it’s a short then I get short.  If my trade doesn’t work out then them’s the breaks as they say.  And if I spot one of my better trading setups and it doesn’t work, … Read More

Learn How to Trade First

I received this email last night during the Cavs/Celtics game. I have to admit I was more interested in the game than responding to this email. But let’s take a swing at it this morning. Hey Bella, This morning when you were trading USO on the open and buying at the 32 level, initially 32 had dropped but you mentioned … Read More