The slow part of the summer is upon us. Seasonally this is the best time to take time off to get ready for another exciting year of trading. August is typically a very slow month in trading, especially the last two weeks of the month. If the volume and volatility is not there, it is not the time to sling … Read More
Be in the Stock When It’s Moving
As we have mentioned previously in my blog some have emailed me with concerns that program trading will rule trading soon. The market will never displace the disciplined independent trader. What is certain is that programs mandate that you adjust your trading and more selectively choose your entry points. Let’s take a look at ELN from yesterday to illustrate this … Read More
Is It Really That Bad?
Yesterday, ELN and WYE were massacred, by Wall Street standards, because of a drug that was being developed for Alzheimer’s disease and failed in phase II trials. The experimental drug was said to “only help half of patients and was linked with a brain-swelling side effect” by Bloomberg.com. (You can read more about it here: http://www.bloomberg.com/apps/news?pid=20601103&refer=news&sid=aseKG.hyyRkw) In the aftermath, ELN … Read More
You are only as good as the stocks you trade
You are only as good as the stocks you trade. Let me repeat this. You are only as good as the stocks you trade! This is a major point of emphasis on our desk. It is taught to trainees during their first week of training. And stressed on a regular basis to all traders at SMB. It is the reason … Read More
Just Trade
There was a bunch of chatter on our desk before the Close about a dead market. DQ, a solid young trader, was complaining, “The energy stocks stopped moving. They don’t move that well after 2:30. Nothing is movin.” I remarked, “So take a look at some of the financials, young fella.” MER was sitting there at 25, bobbing and weaving … Read More
Scalping
Scalping is an important trading technique for new traders to learn. Yesterday was a great example for why. But let me take a step back. Every so often we get a cocky young student who strides into my office and asks direct questions. The last young such kid started with, “do you just teach scalping techniques?” A perfectly legitimate question. … Read More
Fire Sale Prices on CROX
I have to start off by saying that I do own a pair of crocs. I don’t wear them very often out in the city but when out on vacation I sport those bad boys out. Yes, they are very comfortable and oh boy are they some ugly-looking shoes. But hey, I will give up fashion over comfort on any … Read More
Managing Your Profitable Position
During the fourth of July weekend I wrote about oil being ridiculously overpriced (see the blog entry here:Wicked oil). Over the next 2-3 sessions after blogging about it, oil sold off hard ($144 to the low $130s) but it didn’t necessary top off the way I had expected. It was a good sign but I did not have confirmation for … Read More
