{"id":3955,"date":"2010-03-04T17:05:23","date_gmt":"2010-03-04T22:05:23","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=3955"},"modified":"2010-03-04T17:59:34","modified_gmt":"2010-03-04T22:59:34","slug":"making-a-trading-decision","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/making-a-trading-decision","title":{"rendered":"Making a Trading Decision"},"content":{"rendered":"<p>For every trading decision we consider three factors: Reading the Tape, Intraday Fundamentals, Technicals. \u00a0Let me explain how we do this while discussing RIMM from today.<\/p>\n<p><strong>Tehnicals<\/strong><\/p>\n<p>GMan has been pounding the table about RIMM 70 for a few days (GMan actually started his position at 70.50 so he was in a position of strength near this level). \u00a0We draw all these fancy lines on our charts during our AM Meeting representing trend lines. \u00a0 Adam and GMan had some lines glittering on our 65inch Flat Screen TV highlighting the 70 level. \u00a0The idea was if RIMM trades near 70 than this is a trading opportunity for us. \u00a0 This is not an automatic short or long. \u00a0We focus our attention on RIMM at this moment and look for excellent risk\/reward opportunities.<\/p>\n<p>So when RIMM traded below 70 it received our full attention.<\/p>\n<p><strong>Intraday Fundamentals<\/strong><\/p>\n<p>There was no major news on RIMM today. \u00a0Joe P did make the interesting point that EVERYONE has this 70 circled on their charts for RIMM. \u00a0So below this level may bring out the selling and shorting. <strong> <\/strong>Also since this is such an important level we knew to be careful about the HFT&#8217;s playing their games, stopping us out of excellent risk\/reward trades just because they can<strong>. <\/strong>So we had nothing from this element to aggressively short RIMM. <strong> <\/strong><\/p>\n<p><strong>Reading the Tape<\/strong><\/p>\n<p>RIMM dipped below 70. \u00a0Spencer and I treaded lightly because RIMM was clearly not below this level. \u00a0And then we both started saying the same thing with different words.<\/p>\n<p>I began with,&#8221;I don&#8217;t see the selling below 70 yet.&#8221;<\/p>\n<p>And then five minutes later from Steve,&#8221;There is no seller below this 70 level.&#8221;<\/p>\n<p>We didn&#8217;t see the bids getting smacked. \u00a0We didn&#8217;t see offers holding and then stepping lower. \u00a0We didn&#8217;t see bids dropping out quickly. \u00a0We didn&#8217;t see an increase of speed with the order flow.<\/p>\n<p>So we both were short, but not for size since only one of our factors, technicals, called for a short. \u00a0We were ready to pounce if we saw selling. \u00a0We did try and stay short as long as RIMM was below 70. \u00a0But we were not willing to risk significant losses until we saw the tape showing weakness.<\/p>\n<p>These are the three factors that we consider before every trade. \u00a0Perhaps some of them can help you.<\/p>\n<p>Best of luck with your trading! Don&#8217;t forget to <a href=\"http:\/\/twitter.com\/smbcapital\">follow us<\/a> on Twitter!<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/RIMM-03-04-10.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3961\" title=\"RIMM 03-04-10\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/RIMM-03-04-10.png\" alt=\"\" width=\"550\" height=\"430\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/RIMM-03-04-10.png 550w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/RIMM-03-04-10-300x234.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/RIMM-LT-03-04-10.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3962\" title=\"RIMM LT 03-04-10\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/RIMM-LT-03-04-10.png\" alt=\"\" width=\"550\" height=\"430\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/RIMM-LT-03-04-10.png 550w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2010\/03\/RIMM-LT-03-04-10-300x234.png 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bella discusses how he used three factors, Reading the Tape, Intraday Fundamentals, and Technicals to make a trading decision in RIMM today.<\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,3],"tags":[507,717,419,30,268,18,38,723],"class_list":["post-3955","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","category-technical_plays","tag-a","tag-decision","tag-making","tag-prop-trading","tag-rimm","tag-smb-capital","tag-trading","tag-trading-decisions","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>Making a Trading Decision | 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\/making-a-trading-decision\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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