Traders Ask: Must I Learn Opening Drive Plays?

“I never think that there’s something I can’t do, whether it’s beating my opponent one on one or practicing another hour because something about my game is just not right.” Earvin Magic Johnson   Hey Bella, Hope you are enjoying this gorgeous weather! I know you are probably being bombarded with e-mails because of your new book (which I am … Read More

An Exercise 2 Help U Improve as a Trader (RIG)

Today RIG was the easiest of stocks to trade. 55 was the level. RIG dipped below there. And it trended in the most beautiful downtrend. Were you in this trade? I wasn’t. This level was discussed during our AM meeting. Again I wasn’t in this trade. We have discussed this RIG level on our desk for days. Oil was weak. … Read More

A Small Rip Can Lead To A Big Chop?

I foolishly decided that buying NTRS on a pullback to 48.50 this morning was a great risk/reward trade.  NTRS had broken its recent downtrend yesterday and closed at the high of the day on good relative volume.  In my many years of trading this has proven to be a high percentage play.  BUT during the past three weeks I have … Read More

Traders Ask: How to Recognize Real Order Algos

Yesterday we received an inquiry from a reader regarding algos. Read the inquiry below: Hi. I have been trading for  nine years now and one of my biggest strengths is tape reading. However, the algo programs are absurd these days. How does the Gman distinguish real buying from some program just market making a stock? Also, it seems like the programs are more in … Read More

Traders Ask: How Much Capital Do I Need to Trade?

I’ve lost tremendous amounts of money in various markets and I think that that’s something that makes you better at my job, not worse. Jim Cramer I received this email from reader Danielle. My sense is that our blog readers would have strong opinions that would help Danielle.  So I open up this blog asking for your advice to Dan. … Read More

How To Get Back In

A very talented experienced trader joined our desk about five months ago. Let’s call him Trader Dan. He decided SMB was a better fit for his personality than his original trading firm. His first trading job entailed shorting very strong stocks intraday and getting long very weak stocks intraday. Somehow he was able to earn a living with that strategy … Read More