So today during our AM meeting Steve highlighted MS as his stock of the day.\u00a0 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.”\u00a0 Now that is what I call a\u00a0great call.\u00a0 On Friday Steve mentioned MS as a stock to watch.\u00a0 He remarked that MS might see 8\u00a0during the trading day.\u00a0 Yet another great\u00a0call.\u00a0 Steve played MS on the short side on Friday and MS on the long side today.\u00a0 He made money shorting MS on Friday and long\u00a0MS today.\u00a0 So did our Head Trader, GMan, taught by us.\u00a0<\/p>\n
I preach for our traders to be mentally agile.\u00a0 We preach for our traders to follow the intraday trend on almost all occasions.\u00a0 SMB teaches its new traders trading plays that allow them to make money short and long.\u00a0 When I was taught how to trade we\u00a0did not\u00a0watch CNBC during the day.\u00a0 We did not trade with charts.\u00a0 We had no breaking news feed.\u00a0 We were taught to watch the stock\u00a0and determine its direction.\u00a0\u00a0 Some of the most profitable traders on our desk could tell you\u00a0Derek Jeter’s road batting average against right handed pitchers on AstroTurf during the day.\u00a0\u00a0 If you asked them the P\/E of EBay they probably would return a blank stare.\u00a0<\/p>\n
Now obviously times have changed.\u00a0 Charts, breaking news, CNBC\u00a0on in the background is standard at most firms.\u00a0 But honestly if you shut down my charts, turned off CNBC,\u00a0closed our breaking news feed\u00a0I could still make plenty of\u00a0money trading.\u00a0 I am a trader.\u00a0 If the stock was strong for the day I would chop it up.\u00a0 If the stock was weak\u00a0my results would be similar.\u00a0 I don’t care where a stock is going for the day.\u00a0\u00a0A short on Friday of MS from 8 to 7.50 is the same as my long from 18.71 to 19.21 today.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n
The first thing new traders can do to improve their results is stop pretending they have a feel for where a stock may go.\u00a0 It will take at least three years before you will be able to develop a feel for where a stock may trade.\u00a0 Watch the stock and trade it.\u00a0 When its strong then get long.\u00a0 When its weak then get short.\u00a0 Your job is to make One Good Trade.\u00a0 Your job is not to make predictions.\u00a0 CNBC is not calling you up to make calls on the market or stocks.\u00a0 Leave your biases and opinions at the door when you step onto the trading floor.\u00a0 Our trading floor is for traders.\u00a0 It’s for those who can make money on either side.\u00a0 Its for traders who ask: How do I make money today?<\/p>\n
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