We teach our day trading desk, SMB Capital,\u00a0in New York City to check to see which stocks they are making money in.\u00a0 I supposed a new prop\u00a0trader reading this might say, “How could I not know that? Or that seems like a complete waste of time.”\u00a0 You would be surprised.\u00a0 The human mind is a funny thing.\u00a0 It does not always process information accurately about one’s experiences.\u00a0 And often your perception is different\u00a0than reality, especially with your trading results.<\/p>\n
\u00a0For example, you may remember the last rip you took in a\u00a0VLO and overvalue that trade (re-balancing recently-ripper).\u00a0 You may conclude that\u00a0VLO is a bad trading stock for you because of the last rip.\u00a0 But it is entirely possible when you check your numbers that you made a ton of money in VLO.\u00a0 It is just that you are obsessing about that last rip.\u00a0 Further you may think you are killing AGU, check the numbers, and find out that the best you do is break even.\u00a0 If you do not make money consistently in a stock why continue trading it?\u00a0<\/p>\n
I traded CHK today.\u00a0 And my thoughts before the Open were that I do not trade this stock well.\u00a0 This is probably because I\u00a0was overvaluing the rip that I took after the Close in CHK, which I blogged about yesterday.\u00a0\u00a0I traded\u00a0CHK very well this AM and am sitting\u00a0in my office writing this blog up (though people keep knocking on my door)\u00a0a significant amount of money.\u00a0 And I just\u00a0checked my numbers over the past few weeks and I learned that I\u00a0am consistently profitable in CHK.\u00a0 Chop!\u00a0 I should trade\u00a0CHK with more size.\u00a0 I should not have been hesitant to trade\u00a0CHK on the Open.\u00a0<\/p>\n
It’s the little things that make all the difference in your trading.\u00a0 This is just another little thing that you should be doing.\u00a0 Check your numbers.\u00a0 See which stocks you are making money\u00a0in.\u00a0 Stick with them.\u00a0 Eliminate the stocks with which you consistently struggle.\u00a0 If you do your results will improve.<\/p>\n
Best of luck\u00a0with the rest of your trading today!\u00a0<\/p>\n
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