Archive for June, 2007
Pride vs. Plan in Trading
June 25, 2007 at 2:24 pm
If survival as a trader depends upon self-control, then it all boils down to how well you balance out your internal pride with your trading plan to make it all work.
This week’s Free Newsletter over at TheStockBandit.com discusses this exact topic, so be sure to stop by and read it for more of my thoughts on the topic.
By the way, you can sign up for the free newsletter on the Free Newsletter page at TheStockBandit.com and we’ll notify you every time one is published. An opt-in form is provided at the top of the page which puts you in full control of your email subscription at all times.
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
The Key to Trading Survival
June 18, 2007 at 9:57 pm
They say “you’ve gotta be in it to win it“ and that’s as true as it can be in the world of trading.
Since that’s the case, it’s only fair to say that to survive as a trader is the most important thing you can do, with all other things being secondary.
This week’s Free Newsletter over at TheStockBandit.com discusses this exact topic, so be sure to stop by and read it to find out The Key to Trading Survival.
By the way, you can sign up for the free newsletter on the Free Newsletter page at TheStockBandit.com and we’ll notify you every time one is published. An opt-in form is provided at the top of the page which puts you in full control of your email subscription at all times.
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Back to the Highs
June 17, 2007 at 10:36 pm
The bulls rebounded quite nicely last week after the biggest dip we’ve seen in the major averages since the Feb/March decline. We’re back to the highs already though, which means the bulls are still sitting in great shape.
This week we could be in for a bit of digestion with a short-term rest, as that would be healthy action after the bounce we’ve seen the past 3 sessions, but the trend remains up across all timeframes. Be sure to check out this week’s Market View page over at TheStockBandit.com for a closer look at the indexes before you start your trading week.
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
U.S. Open Golf Can Help Your Trading
June 16, 2007 at 10:55 pm
Last year during this same time I wrote a series on Trading and Golf to outline a number of lessons between the two games (yes, trading is a game!). So with the U.S. Open final round set to air tomorrow afternoon, no doubt it will take center stage for a great number of traders. There are a lot of similarities found when comparing the pressures of trading with the challenges golf brings, so be sure to check out some of last year’s posts (there are 18 total posts but most are brief).
And of course, to those of you who are Dads, Happy Father’s Day!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Golf, U.S. Open, Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
CyberTrader & Schwab Integration Update
June 15, 2007 at 7:10 pm
A little while back, I discussed how CyberTrader is integrating with Schwab, and the discussion has been somewhat ongoing about what all that will mean. Lots of traders were concerned that certain things they enjoy right now with CyberTrader might not be included unless Schwab’s StreetSmart Pro were to make some improvements. Good news – here’s an update of some details I got today through an email sent by Vincent Phillips, CEO of CyberTrader addressing some of the big items of interest:
Per-share Pricing – CyberTrader’s currently published equity pricing, including per-share pricing, will be honored at Schwab for all current CyberTrader clients regardless of your assets or trading activity. Call Client Services with any questions about your pricing.
Strategy Testing Tools – The same advanced back-testing suite you currently use is already integrated within Schwab’s StreetSmart Pro® trading platform.
Saved Layouts/Watch Lists – Upon integration, your saved CyberTrader Pro layouts and watch list settings will automatically load into StreetSmart Pro. You will not have to learn how to use a new trading platform – it will look quite familiar to you.
Briefing.com Research – In addition to continuing to receive free Briefing.com and MarketEdge research, through Schwab you will also get access to proprietary content like Schwab Equity Ratings, integrated into StreetSmart Pro.
Direct-Access Orders – Schwab’s equity direct-access order-routing technology and tools were developed by CyberTrader. These tools provide clients with choices regarding where to route orders.
Advanced Order Types – In addition to currently supporting limits, stops, trailing stops and alerts with Schwab by the end of 2007 you will also have contingent order-entry capabilities to simultaneously place profit and loss order targets with your buy and sell orders.
Real-time Profit & Loss – Upon integration, you will receive streaming lot-level cost-basis data currently available in your trading platform.
Futures Data – All CyberTrader clients will receive CME® futures data through StreetSmart Pro.
Starting right out with the per-share pricing is great, although they addressed that from the very beginning. Platform-wise, I’m particularly happy to hear that the contingency orders (brackets, OTO, OCO) are still coming, and that futures data will still be available for current CT clients after the integration (since I watch them all day long).
I’ve traded with CyberTrader for several years, so I shared some of the concerns since my experience with CT has been ideal from day 1. I’ve also been a Schwab client for even longer, and I’ve never had a complaint there either. Changes in anything are not always perfect, but it looks like what’s important to me will be kept intact, and unless you’re using an API or placing basket orders, any difference between the two should be minimal. Looks like a nice list and I get the feeling they’ll keep us posted regularly going forward.
Enjoy your weekend & Happy Father’s Day!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Finding Short Sale Candidates
June 12, 2007 at 5:12 pm
Last week’s market pullback after a very long upside run might have been a change of character. In fact, with Friday’s bounce now having failed, the charts are suggesting some further downside may be in store. When considering the psychological changes that can come with a sudden, sharp correction after such a steady uptrend, there just might be a shift to a more defensive posture by the longer-term players. Bulls with nice gains to protect sometimes view subsequent bounces as second-chance selling opportunities, which can certainly have a slowing effect on the advance, and Tuesday’s turnaround is in line with that. Further, the bears who have been waiting so patiently might now begin to view this recent market weakness as an opportunity.
I’m no perma-bull or bear, I simply let the charts be my guide when it comes to trading the long or short side of the market. However, there are a few things I’ll point out when it comes to finding short sale candidates after a big advance like we’ve had.
It’s important to note that although trading the short side is technically just the reverse order of a long-side trade (with a short sale you sell first and buy back later), in practice it can play out very differently. We’ve already discussed how to get short, but let’s examine 4 related and important characteristics when locating high-probability short selling candidates, just in case this market is undergoing a change of character.
Volume. Trading the short side presents a completely different animal than the long side when it comes to trading volume. To move higher, a stock needs strong volume with new buyers entering the picture to produce greater demand on the shares, so long-sided trades should show improved relative volume. On the flip side, stocks don’t need high volume to move lower. In a skittish market, buyers who are bidding for shares may simply cancel their orders. That means that volume can actually diminish while the supply vs. demand relationship changes. The “heavy” supply in relation to the lighter demand is what leads to the phrase, “stocks can fall of their own weight.”
Chart Patterns. There are a number of bearish chart patterns which represent the psychology of buyers and sellers, helping to provide an edge on the short side when they surface. Being able to locate and correctly diagnose these patterns will help you locate higher-probability trades than arbitrarily deciding that a given stock “looks expensive.”
Failing Bounces. The description speaks for itself, but a failing bounce occurs when a stock has corrected, is trying to recover or “bounce”, and it becomes apparent that the upside momentum will fall short of reaching the previous peak. Initiating a short sale into a failing bounce can present a clear-cut exit (buy to cover at the previous high) as well as a nice entry for when the next wave of selling hits the stock.
Lower Highs. Failing bounces lead to lower highs on the charts, so having a few already in place should mean a downtrend is being established. Each time a stock attempts to recover, it comes under selling pressure again as weak holders unload shares in an effort to raise cash. Lower highs increase the odds of success when trading the short side, implying that the stock has already “topped out.”
Trading the short side can provide you with some nice profits when done properly, and also can be a nice natural hedge against long positions when corrections come. The market isn’t always in bull mode, so keep an open mind to the short side and one of these days you may be glad you did!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Looks Aren’t Everything
June 11, 2007 at 12:11 pm
There sure are a lot of stocks still in bull mode, even after last week’s dip. I’m seeing a lot of stocks which have the right look to them, but not every single one of them make for ideal trading candidates. Some of them are OK on the surface, but looking a little deeper reveals some character flaws.
This week’s Free Newsletter over at TheStockBandit.com discusses this exact topic, so be sure to stop by and read it for my thoughts on the subject.
By the way, you can sign up for the free newsletter on the Free Newsletter page at TheStockBandit.com and we’ll notify you every time one is published. An opt-in form is provided at the top of the page which puts you in full control of your email subscription at all times.
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
