If you’re short Amazon (AMZN), raise your hand and Tommy will come over and hit you on the head with a tack hammer.
There was no end to the stream of people getting killed trying to short this stock. I’ll admit, this was one of the stocks that I talked about day trading yesterday. I tried to short it Friday morning after earnings and a huge gap up, but I quickly turned it around for a 3 point gain. There was no way I was touching a short today.
There is NO reason to be short this stock right now. It is in uncharted territory [...]
From the monthly archives:
October 2009
Day Trading Mistakes Happen. Get Over Them and Move On
Have you ever seen the movie Groundhog Day? It stars Bill Murray as a disgruntled weatherman who’s pissed about his assignment to cover the events surrounding Groundhog Day in Punxsutawney. Due to a blizzard after the events he is forced to spend the night in this town that he loathes. He wakes up the next morning to find himself reliving Groundhog Day again. This happens repeatedly until he straightens his priorities and gets his co-star (Andie MacDowell) into bed.
Groundhog Day came in October for Me
Bill Murray spends the first few days [...]
An alliterative title and a simple message; trade the trend.
Sam of Tradersam’s Blog wrote a this post today about a website called Wordle. This program takes any block of text, including that from a website, and converts it into a word cloud. This allows you to visualize what the site might be about.
Trade the Trend
I decided to check it out for myself using ChartShark.com, and look what the largest two words are; “Trade” & “Trend.” Apparently, subconsciously, I’ve been really hammering this point. Trade the trend, the trend is your friend, don’t fight the trend. You can say it a million ways [...]
What do you do once you’ve entered a trade? Do you already know where you’ll exit, be it a win or a loss, or do you just meander along until you feel like exiting? Or, even worse, do you sit there and agonize over every single move in your stock; exiting too early or too late and losing loads of money along the way?
Micromanaging Your Trades
You’re bleeding cash. You watch every twitch and wiggle of the price and each move causes you a little more anxiety. You rationalize exiting early or a little too late and each time you either [...]
I am not a bull, or a bear, I am a shark. I trade without bias. This allows me to be fast and flexible with my trading decisions. The market continues to defy gravity, yet there are still people out there fighting the trend and attempting to be the first to predict the top.
We sharks don’t trade based on pre-conceived notions of what should be occurring, we trade and invest based on what is actually occurring right in front of us. We will continue to profit, and those who can’t accept reality will be eaten by the market.
You seem to think chart analysis is a lot more difficult than it really is. Instead of giving it a go on your own, you rely on the wisdom of us brilliant chartists to hand you money-making set-ups on your favorite stocks.
I am here to tell you, friend, that it’s not that difficult to do some basic technical analysis on your own. Let’s take a walk through the basics, shall we?
Connect the Pointy Bits
On a stock chart, you have peaks and troughs. In order to identify the trend of a stock, you simply find these peaks and troughs and connect [...]
Before ever entering a trade, you should already know how you are going to get out. The trade should be planned end-to-end, whether the plan turns out to be a winner or loser. In this post I’m going to discuss how to set stops to protect yourself from your biggest enemy, you.
Mental Stops
Mental stops are a questionable strategy. As a trader, the biggest battle you face is not against the market (you will lose that battle, I promise), it is the battle against your own mind. Any chance to eliminate your mind from the process of trading gives you an edge [...]
