Large movements generally start more than 15 minutes before the Close. The last four trading days we have seen very explosive moves in the last 15 minutes of the trading day. Today we tanked right before the Close. The last two trading days we have seen significant downmoves. The two trading before that we saw significant upmoves. Today in the … Read More
More on Expectations
Expectations can be harmful to your trading. We ask all of our prop traders to set goals for themselves. I do for myself. Whether its for my trading or our trading firm. As John Wooden says,”make each day your masterpiece.” But goals often for the new trader are incorrectly results based and not process based. And I want to take … Read More
Think About Your Trading
After the Close I was talking with two veteran traders. Both trade with us. Both are very wealthy from years of successful trading. You know how the NBA named its 50 best all-time players? Well one of these traders I describe as one of the 50 best day traders of all time. He actually taught me how to trade. Though … Read More
Reversals, Reversals, Reversals
Friday was a very difficult trading day because the market reversed so many times. Into the Close the market reversed four times. I usually get caught in one reversal a week. I got caught in eight yesterday. I would make a bunch of profitable trades and then a stock would reverse. I got caught in the SPY upmove midday from … Read More
What is our Next Market Pattern?
As a trader I am like a WWII decoder. The market talks to us. It just does so in code. And often that code is challenging. But patterns always emerge such that we can understand the market and what she is saying. Yesterday after the announcement that the government would directly infuse cash into the big banks we sold off. … Read More
How Do I Make Money Today?
So today during our AM meeting Steve highlighted MS as his stock of the day. Steve said, “I am going to look for a pullback right on the Open and then look for MS to trade in an uptrend for the day.” Now that is what I call a great call. On Friday Steve mentioned MS as a stock to watch. … Read More
Where is the bottom? Make a List
I got a call from a family friend anxious about his 401k a few minutes ago. There was panic on the other end of that call from an upstate suburb. When will the market bottom? How long will it take for me to make back what I lost? What the hell is going on down there? This is not an … Read More
Holy guacamole..what a negative reaction
I must say I am extremely disappointing in the Fed for their silly attempt to prop up the stock market with a fed cut of 50bps this morning. I mean seriously, the entire street was expecting that. If they really wanted to create a very positive reaction they should have tried to catch the market by surprise. Here’s how you … Read More