{"id":9939,"date":"2011-02-15T08:46:29","date_gmt":"2011-02-15T13:46:29","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=9939"},"modified":"2021-05-06T15:18:13","modified_gmt":"2021-05-06T19:18:13","slug":"traders-ask-why-the-discrepancy-midday-trading","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading","title":{"rendered":"Traders Ask- Why the Discrepancy? (Midday Trading)"},"content":{"rendered":"<p>Bella,<\/p>\n<p>I have a question about trading midday.<\/p>\n<p>The lecture on times of the day (Day 15) seems to recommend giving extra room on the downside and the upside during midday trading:<\/p>\n<p>In most trades you need to give your stock a bit of extra room to both the downside and the upside. Your mentality is to find plays that you can hold for the bigger move.<\/p>\n<p>but the lecture dedicated to midday trading (also Day 15) recommends as best practice to:<\/p>\n<p>4. Take your profits quickly.\u00a0and<br \/>\n6. Lower your loss limits, to the tightest of the day.<\/p>\n<p>They seem like opposing views in a way. The trades I&#8217;ve been placing midday seem to work better when they&#8217;re off important levels and I give them a little more room on the downside (to account for little fake breakouts that seem to happen more in midday) and less room on the upside since the stock may not quite make it to the next important level. I may take profits at an intermediate level instead, as long as the risk\/reward is still 5 to 1. I basically assume a level is going to hold and breakouts will not work unless I see otherwise (ie volume coming in). Am I correct in this?<\/p>\n<p><strong>Bella Responds<\/strong><\/p>\n<p>Such an interesting question and great catch by you. \u00a0Awesome focus during your learning period. \u00a0 So why the\u00a0discrepancy?<\/p>\n<p>The lecture you read in our training program is during your learning period of Reading the Tape and was written during a very different market. \u00a0Today we do emphasize longer holding trades and trade more midday than 2006 (when the lecture was written). \u00a0 In 2006-2008 we focused more on momentum trading and scalping as this worked best for the new trader. \u00a0Today we focus more on Trades2Hold as HFTs and a very strong market are present.<\/p>\n<p>We find that trades that work best work best right away. \u00a0<a href=\"http:\/\/joefahmy.com\/\">Joe Fahmy<\/a>, our guest lecturer on Monday, reaffirmed this trading principle. \u00a0Legendary trader\u00a0<a href=\"http:\/\/seekingalpha.com\/article\/170341-paul-tudor-jones-the-great-liquidity-race-and-gold\">Paul Tudor Jones<\/a> cuts trades that are not working for him quickly and are irritating to spend his emotional capital on better opportunities. \u00a0Your solution to give your trades &#8220;more room&#8221; if done because your holding period is longer and you expect a large gain makes sense. \u00a0A conclusion to give a trade &#8220;more room&#8221; because it is the midday, or you are gaming for shakeouts needs further review.<\/p>\n<p>Great job by you working on your trading game!<\/p>\n<p>Mike Bellafiore<\/p>\n<p>Author, <a href=\"http:\/\/www.amazon.com\/One-Good-Trade-Competitive-Proprietary\/dp\/0470529407\/ref=cm_cr_pr_product_top\">One Good Trade<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bella, I have a question about trading midday. The lecture on times of the day (Day 15) seems to recommend giving extra room on the downside and the upside during midday trading: In most trades you need to give your stock a bit of extra room to both the downside and the upside. Your mentality is to find plays that &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,908],"tags":[1620,4674,1622,81,1621,1193,653,1354,1349],"class_list":["post-9939","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","category-traders-ask","tag-midday-trading","tag-one-good-trade","tag-shakeouts","tag-smb-training","tag-times-of-the-day","tag-trader-education","tag-trader-training","tag-trading-coach","tag-trading-mentor","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>Traders Ask- Why the Discrepancy? (Midday Trading) | 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\/traders-ask-why-the-discrepancy-midday-trading\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Traders Ask- Why the Discrepancy? (Midday Trading) | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Bella, I have a question about trading midday. The lecture on times of the day (Day 15) seems to recommend giving extra room on the downside and the upside during midday trading: In most trades you need to give your stock a bit of extra room to both the downside and the upside. Your mentality is to find plays that ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2011-02-15T13:46:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-05-06T19:18:13+00:00\" \/>\n<meta name=\"author\" content=\"Bella\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bella\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading\"},\"author\":{\"name\":\"Bella\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161\"},\"headline\":\"Traders Ask- Why the Discrepancy? (Midday Trading)\",\"datePublished\":\"2011-02-15T13:46:29+00:00\",\"dateModified\":\"2021-05-06T19:18:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading\"},\"wordCount\":420,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"keywords\":[\"midday trading\",\"One Good Trade\",\"shakeouts\",\"smb training\",\"times of the day\",\"trader education\",\"trader training\",\"trading coach\",\"trading mentor\"],\"articleSection\":[\"Mike Bellafiore's (Bella's) Blogs\",\"Traders Ask\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading\",\"name\":\"Traders Ask- Why the Discrepancy? (Midday Trading) | SMB Training\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\"},\"datePublished\":\"2011-02-15T13:46:29+00:00\",\"dateModified\":\"2021-05-06T19:18:13+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.smbtraining.com\/blog\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Traders Ask- Why the Discrepancy? (Midday Trading)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"name\":\"SMB Training Blog\",\"description\":\"Lessons from the trading desk\",\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\",\"name\":\"SMB Training\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"width\":230,\"height\":81,\"caption\":\"SMB Training\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/smbcap\/\",\"https:\/\/x.com\/smbcapital\",\"https:\/\/www.youtube.com\/user\/smbcapital\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161\",\"name\":\"Bella\",\"description\":\"Mike Bellafiore is a co-founder of SMB Capital, a day trading firm which takes great pride in its exceptional training program. SMB Capital is an equity prop trading desk that trades on 5th Avenue in New York City. Mr. Bellafiore is a graduate of the University of Connecticut School of Law. He has traded professionally for more than a decade.\",\"sameAs\":[\"https:\/\/www.smbtraining.com\/blog\/bellas-blog\"],\"url\":\"https:\/\/www.smbtraining.com\/blog\/author\/bella\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Traders Ask- Why the Discrepancy? (Midday Trading) | SMB Training","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading","og_locale":"en_US","og_type":"article","og_title":"Traders Ask- Why the Discrepancy? (Midday Trading) | SMB Training","og_description":"Bella, I have a question about trading midday. The lecture on times of the day (Day 15) seems to recommend giving extra room on the downside and the upside during midday trading: In most trades you need to give your stock a bit of extra room to both the downside and the upside. Your mentality is to find plays that ... Read More","og_url":"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading","og_site_name":"SMB Training Blog","article_publisher":"https:\/\/www.facebook.com\/smbcap\/","article_published_time":"2011-02-15T13:46:29+00:00","article_modified_time":"2021-05-06T19:18:13+00:00","author":"Bella","twitter_card":"summary_large_image","twitter_creator":"@smbcapital","twitter_site":"@smbcapital","twitter_misc":{"Written by":"Bella","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading#article","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading"},"author":{"name":"Bella","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161"},"headline":"Traders Ask- Why the Discrepancy? (Midday Trading)","datePublished":"2011-02-15T13:46:29+00:00","dateModified":"2021-05-06T19:18:13+00:00","mainEntityOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading"},"wordCount":420,"commentCount":0,"publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"keywords":["midday trading","One Good Trade","shakeouts","smb training","times of the day","trader education","trader training","trading coach","trading mentor"],"articleSection":["Mike Bellafiore's (Bella's) Blogs","Traders Ask"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading","url":"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading","name":"Traders Ask- Why the Discrepancy? (Midday Trading) | SMB Training","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/#website"},"datePublished":"2011-02-15T13:46:29+00:00","dateModified":"2021-05-06T19:18:13+00:00","breadcrumb":{"@id":"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.smbtraining.com\/blog\/traders-ask-why-the-discrepancy-midday-trading#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.smbtraining.com\/blog"},{"@type":"ListItem","position":2,"name":"Traders Ask- Why the Discrepancy? (Midday Trading)"}]},{"@type":"WebSite","@id":"https:\/\/www.smbtraining.com\/blog\/#website","url":"https:\/\/www.smbtraining.com\/blog\/","name":"SMB Training Blog","description":"Lessons from the trading desk","publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.smbtraining.com\/blog\/#organization","name":"SMB Training","url":"https:\/\/www.smbtraining.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","width":230,"height":81,"caption":"SMB Training"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/smbcap\/","https:\/\/x.com\/smbcapital","https:\/\/www.youtube.com\/user\/smbcapital"]},{"@type":"Person","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/80500a901d0e5ce0a27fa996bb1b9161","name":"Bella","description":"Mike Bellafiore is a co-founder of SMB Capital, a day trading firm which takes great pride in its exceptional training program. SMB Capital is an equity prop trading desk that trades on 5th Avenue in New York City. Mr. Bellafiore is a graduate of the University of Connecticut School of Law. He has traded professionally for more than a decade.","sameAs":["https:\/\/www.smbtraining.com\/blog\/bellas-blog"],"url":"https:\/\/www.smbtraining.com\/blog\/author\/bella"}]}},"_links":{"self":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/9939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/users\/144"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/comments?post=9939"}],"version-history":[{"count":1,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/9939\/revisions"}],"predecessor-version":[{"id":50841,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/9939\/revisions\/50841"}],"wp:attachment":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/media?parent=9939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/categories?post=9939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/tags?post=9939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}