{"id":2261,"date":"2009-10-16T10:39:58","date_gmt":"2009-10-16T15:39:58","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=2261"},"modified":"2009-10-16T10:39:58","modified_gmt":"2009-10-16T15:39:58","slug":"one-good-trade","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/one-good-trade","title":{"rendered":"One Good Trade"},"content":{"rendered":"<p>We evaluate our trading at SMB on the process.\u00a0 If you focus on the process instead of the result in any endeavor in life your chances at success are much greater.\u00a0 Too often people focus on the results.\u00a0 When you confuse a good outcome with good work you are bound to form bad habits that will harm you in the long run.\u00a0 You also will eliminate good habits that would have propelled you to success.\u00a0 Let me explain.<\/p>\n<p>Yesterday,\u00a0 I was down some money in AIG.\u00a0 Initially, I was short based on the prior day&#8217;s weakness.\u00a0 I lost some money on the Open as AIG popped above its prior resistance at 45.60.\u00a0 I then lost some money long as it traded powerfully up to 46.50 before reversing.\u00a0 Both of my trades were fundamentally sound but resulted in losses.\u00a0 If I overvalued the loss as opposed to the reasoning behind the trades I would cause harm to my future trading results.\u00a0 I might pass on similar setups in the future that offer excellent risk\/reward.\u00a0 I have been doing this far to long to fall into that trap.<\/p>\n<p>I used the afternoon trading session to enter into a few far less risky yet sound trades.\u00a0 The trades were in HOG, MGM, and AXP.\u00a0 All three trades were perfectly sound yet only two of the three ended in a profitable result.\u00a0 The one caveat I would make is that I have vowed several times in the past &#8220;to never trade that piece of X@%$$&#8221; when referring to AXP.\u00a0 But the setup was so nice I had to make the trade.\u00a0 Of course it didn&#8217;t work out \ud83d\ude42<\/p>\n<p>AXP released charge off information around 11:45 AM.\u00a0 It popped on very heavy volume.\u00a0 It then consolidated in a tight range for over one hour.\u00a0 I bought it when it broke through the day&#8217;s high of 35.\u00a0 I lost.\u00a0 Not surprising.\u00a0 It&#8217;s AXP.\u00a0 If it was any other stock I probably would have set an alert at 35 and given it one more shot.\u00a0 My failure to do so was an example of me overvaluing the result as opposed to the process.\u00a0 If I had bought on the next break above 35 I would have been rewarded with a 50 cent up move (love his stuff).<\/p>\n<p>The trade in HOG was based on a stock that was consolidating above it&#8217;s morning high.\u00a0 One of our traders had identified a hunt order at 27.09 that would scoop any offer below 27.10.\u00a0 I bought a small position at 27.11 and set a stop order for 27.05.\u00a0 I was rewarded with a $1 up move.\u00a0 Chop!!\u00a0 I love buying stocks that consolidate above the opening range high.\u00a0 Sound reasoning and a good result will further entrench this trade in my playbook.<\/p>\n<p>The final trade was in MGM.\u00a0 After being weak in the premarket MGM popped to 11.90 right on the Open.\u00a0 In the final hour it released some financial data and was holding the bid at 11.92.\u00a0 I bought some at 11.95 and put a stop order in at 11.89.\u00a0 I was only looking for about 20-25 cents on an up move as there is major resistance at 12.20.\u00a0 I was rewarded with a twenty cent up move.\u00a0 Again, I love making trades where there is a held bid in a stock above its morning high.<\/p>\n<p>If your reasoning is sound and you are consistent in your execution good results will follow.\u00a0 That is the essence of trading.\u00a0 And for those of you who maybe be wondering about the title of the blog&#8212;yes it could be a hint as to the upcoming title of a highly anticipated book on the world of prop trading&#8230;<\/p>\n<p>Don&#8217;t forget to <a href=\"http:\/\/twitter.com\/smbcapital\">follow us<\/a> on Twiter!<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-2268\" title=\"AXP 10-15-09\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/10\/AXP-10-15-09.bmp\" alt=\"AXP 10-15-09\" \/><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-2269\" title=\"HOG 10-15-09\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/10\/HOG-10-15-09.bmp\" alt=\"HOG 10-15-09\" \/><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-2270\" title=\"MGM 10-15-09\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/10\/MGM-10-15-09.bmp\" alt=\"MGM 10-15-09\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We evaluate our trading at SMB on the process.\u00a0 If you focus on the process instead of the result in any endeavor in life your chances at success are much greater.\u00a0 Too often people focus on the results.\u00a0 When you confuse a good outcome with good work you are bound to form bad habits that will harm you in the &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/one-good-trade\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":143,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,15],"tags":[],"class_list":["post-2261","post","type-post","status-publish","format-standard","hentry","category-steven_spencer_steves_blogs","category-trading_theory","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>One Good Trade | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/one-good-trade\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"One Good Trade | SMB Training\" \/>\n<meta property=\"og:description\" content=\"We evaluate our trading at SMB on the process.\u00a0 If you focus on the process instead of the result in any endeavor in life your chances at success are much greater.\u00a0 Too often people focus on the results.\u00a0 When you confuse a good outcome with good work you are bound to form bad habits that will harm you in the ... 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