Momentum trading requires guts. Take a look at the two day chart of SRS. There is a ton of money trading the trend of SRS. But I am not gonna sit here and tell you it’s easy. But if you want to be a great momentum trader you must take advantage of opportunites like SRS. Often with momentum trading you … Read More
Light Volume
The volume was light on the Open. GS didn’t have many real orders. During our SMB AM Meeting we thought GS might find some real orders. FCX didn’t. ABX was pretty strong. AET was very strong. I traded AET on the Open. But even with AET the volume was very light for a stock in play. So what do … Read More
Getting Better
I read a lot of blogs. And lately a popular topic has been goals for 09. Personally I prefer to concentrate on finishing out the year strongly rather than spending any energy thinking about 09. I will do that when the month ends. Also, we don’t do a whole lot of big speeches at SMB. I don’t believe in that. … Read More
Trade With The Break
For the past few days the SPY’s were trading in a fairly tight and narrowing range. Traders were waiting for them to breakout from their narrowing range. Yesterday afternoon the sellers overwhelmed the buyers causing a break to the downside. The 89 support level was broken with force. In after hours action the SPY’s traded down an additional 2+ points. … Read More
Know yourself!
Over the years I have found it extremely important to keep all kinds of information about my trading in journals. In these journals I have found out more about myself and the way I trade than any other trading tool out there. I use the journals to keep track of the obvious, my daily P&L and the volume I did … Read More
Catching Yourself Before Disaster Hits
I picked up a copy of the new Malcolm Gladwell book Outliers this weekend and read something that caught my attention. Gladwell points out that a typical airline accident involves seven consecutive errors. The errors by themselves rarely have an impact on the overall safety of a flight, yet the combination of them consecutively usually lead to disaster. I started … Read More
FCX Revisited
One of the most important attributes of a trader is the ability to quickly change your bias in a stock. This mental skill is paramount for an intraday trader. In today’s market, a stock is likely to reverse its trend multiple times each day. A stock that is very strong one day will be very weak the next. It is … Read More
A Market Bottom Versus An Economic Foundation
One morning before work about a 2 weeks ago I switched from CNBC to Fox News to get a weather update. I was a little early, since Mike Woods usually comes on at about the 8th minute of every ten in an hour (6:18, 6:28, 6:38…) and I caught their quick daily business analysis. The lady reporting was ecstatic about … Read More