Our playoffs have begun- earnings season.\u00a0 This is the time where we as prop traders make most of our money because there is so much price action.\u00a0 Interestingly, there has been tremendous price action in the financials and energy sector recently before these playoffs.\u00a0 Hence a dilimena.\u00a0 What to trade?<\/p>\n
\u00a0Do we stick with the energy and finacials stocks that we have been killing the last many weeks?\u00a0 Or do we find a stock that has reported on that AM and trade it?\u00a0 Personally, I lean towards trading a stock with fresh news.\u00a0 When a stock just reports the price action is so significant that I can get on the wrong side a few times, I can wush out and close out my position too early, I can mess up a few\u00a0trades, the Specialist can screw me out of 50c multiple times, yet I am still gonna make plenty of money trading that stock.\u00a0 Further, I know that that stock is going to be in play, where as I am not as sure when the\u00a0price action\u00a0in the financials and energy will slow.\u00a0<\/p>\n
I will set important alerts for LEH, CHK, JPM, HK, etc.\u00a0 And if a very important level is reached and my earnings stock is not treating me well then\u00a0I will have an option to switch over.\u00a0 But I will focus on\u00a0a stock with fresh news and preferably one that is up or down more than 5% premarket.<\/p>\n
When\u00a0our training program at SMB Capital was filmed for “Wall Street Warriors” I remember saying at the time, “this is the best trading market we have seen in 7 years.”\u00a0 Well now a year later I can blog: this is the best trading market that I have seen in 8 years!\u00a0 The results from our trading desk were outstanding.\u00a0 And now we have earnings season.\u00a0 All that we can ask for as traders is a market that offers opportunity.\u00a0 It doesn’t get better than a market like this.\u00a0<\/p>\n
Good luck with your trading!\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"