@DynamicHedge wrote a must-read piece recently that went viral, “Letters to a Young Trader”, in which along with buckets of awesome advice he also asserted prop trading shops are dying. This is true. But this is not the same as prop trading is dead and/or ALL prop shops are dying. That would not be correct. The author never stated this but … Read More
The Opening Drive Play (UA)
I was watching UA on the open and I wanted to write up this drive because I feel like I’m a bit more comfortable with the slower setups in a trending environment. On the open the timing windows are shorter, the price movements are more whippy, and at the moment it’s generally more difficult for me to control my risk … Read More
Overcoming Your Psychological Issues as a Trader (a Case Study)
Here is a case study on one SMB Trader struggling with his psychology. I’m sure many readers have experienced the same struggles. We end with a plan to solve this psychological issue for this trader. SMB TRADER: I’m really disappointed. This was bad. Probably the most disappointed I have been in myself in a long time. There’s no reason, no excuse, … Read More
Focus on Building Your Trading Position: Embracing Long-Term Strategies (VVUS)
Hey Bella, I was reviewing my trade from VVUS today, and there were two things I forgot to run by you that I was thinking about during the trade. First, I used our discussion on the steepness of moves to help me stay in the trade. I have had problems with past trades where I would get into a position, … Read More
How to tell a stock is breaking down (EDU)
Bella, A couple quick questions on EDU based on what you were discussing in the meeting after the close: I was watching EDU and felt that the 15.70 level was more important intraday support than 15.50. The push down to 15.50 happened simultaneously with the market exhausting its downtrend before pulling back, and at the time it looked like EDU … Read More
Trading Bigger (GMCR)
GMCR from 7/16 Where to add size on this play? I thought about it all day and discussed it with a number of other traders. One camp was “be big at 19.20, the 2nd time, at 11:20am with an out in the mid 30s”. I can’t totally agree with this. I don’t think you can get that big there, responsibly. … Read More
Should you quit trading?
Hey Mike, How are you? Everything at SMB going well? Life outside of work is good? If you have the time, I could use some advice. I have now been trading about 10 months at (firm deleted) and learning from one of the best traders. For our style of trading, the firm as a whole finds this to be one … Read More
Trade Execution
Hey Mike, I had a quick question with regard to order execution style and what orders you use. I know that on our keyboard, we have presets for ARCABidTier and ARCAOfferTier that are limit orders and the custom SWEEP keys that are market orders that process 3c through the bid or the offer. Although I’m working on my keyboarding skills … Read More