Education for Daytraders not Addiction
Most traders won't wait until afternoon to trade long or short, when there were pretty many trading opportunities today. We even missed a few like SMRT that were on the watch list because we had others. We have to reach in sparingly but we pulled up some good ones including EMLX, QLGC, CCMP, CHKP CMVT and a very few more that the other traders found, we researched and liked (like EFII) A second day hold on both CRUS and AMKR.. we had only 2 stops out today and they were actually profitable if you decided to scalp instead of trade. Most trading rooms throw a lot of stocks at you and don't follow through from inception, they never charted them until a few minutes before the call. They haven't been through the rigors of training or have a consistent strategy that is passed along to traders, they go with the flow.
Most of those that "call" stocks are nonprofessional and only can call from the most up list. They have no entry plan and have no idea about where support and resistance lines are. I won't even look at a 'most up' list, I don't have one nor will I post one.. By the time you are in a 'most up' stock it finds its way to the most day list or at least you are buying the high. We don't spend hours a night on watch lists to 'throw junk' at traders, nor do we stick with same 'ole stuff because its too difficult find viable trades in other sectors.
We had about 5-6 for much of the day and if the day is exceptional, we ask "do you need more or are you okay"... A good room will let ONLY THE MODERATORS choose but will recognize a good pick if someone comes up with one. A great room will 'hand hold' each and every trader.. and if one moderator can't do it another one will go and take care of it. We had a really good room before, now with the additional help, we are having a great room slowly evolving and I'm darned proud and tickled and honored to run it and if i have to stay up till 2:00 to have a "trading plan" for the next day, its worth it. It might and probably will limit the presence on the thread as we need to time for classes, enrichment and explanation of every nuance of trading and risk tolerance and money management is priority one. We don't gamble, but we might still lose a trade.
In the past 2 weeks we have limited the picks and discuss the entries, holds and exits.. even with stops.. and we plan to meticulously execute EACH and EVERY trade because this is what the traders want.. and that is what they will get. They don't want endless picks. Sometimes when we have 2 or 3 in the scope, we say, "We are watching this former watch list pick (i.e. UTEK, PSUN etc)" or we have a news related play like SMRT or DSGX with a good report. The traders are demanding and only the strong rooms and traders survive and prosper. Anyone can enter a stock that is the high of the day, you have to have the right entry a game plan for EXIT, right away and we have the watch list and former traders (we watch them consecutive days, even if don't necessarily hold them, which we rarely do)
Every stock (so far about 3/4 since there is still features coming that will make that easier) will have a annotated chart with the trigger (or triggers in case we call another trigger at a possible break from consolidation for those you missed the first).. has a customized chart with trigger points and the weakness and reversal bars, we might have a few less trades then we did a month ago, when we were essentially an advanced group of "Gemmers" who worked together like a well-oiled machine.
Now we have grown to double and maybe soon triple and although it seems 'trite' to use the word education that is still what we strive for. No one wants complaints, and occasionally if one or two of the 5 triggers go awry, we understand you might possibly be in that one, but there is ALWAYS another one around the corner and we are scrupulous with stops (I never used such tight ones personally, but the traders like them) so we aim to please. And if you can't please the trader they won't come back and won't make money, so they are your feedback at a job well done.
But to REFRAIN from trading completely is not the answer. LIMITING trading to your own level of expertise is a better strategy. You should bend to the challenge of the market climate. I most assuredly did not see the SHORT sign flickering today until about 2:15.
If you keep your losses small and run with your winners you can actually have 3 losing trades and 1 winner that can be excellent (like QLGC) but of course 1 loss and 3 or 2 winners are better for the ego.
We stick with market internals and they were there today and when they weren't we weren't long. I don't think even the worst rooms are forcing trades and I've been to plenty. Mostly they just call eons of stocks without much analysis. When you have a disciplined trading pattern and and method, its easier and we have gotten even more disciplined lately. I've been learning from some of the traders also, especially in the last week. Traders who are savvy, say what they want, and don't get into forced trades.. maybe if the rooms would let ONLY THE MODERATORS pick the stocks they would be better off..
Last week I was in a truly good room, one of the oldest (I was there myself in 1996 and was going to work with him then) Now by 10:00 there were about 12 stocks targets called.. I had to count them as they were in different colors and here there WERE only 2 moderators, but even they called too many. Another room said "We leave Exits to the trader".. and other BS..
Anyhow I give the trader a whole lot more credit today and even the NOVICE is growing more SAVVY. They know EXACTLY what they want and I admire their tenacity in striving to get it.
We are also going to be having a special area where our live plays are running and closing them will be a 3 moderator affair. Dave, this is not kid stuff, this has to be done. Once in a while I did notice a few starting to throw picks and it was stifled.. in our old room a few years ago NO ONE WAS EVEN ALLOWED to speak.. until the calls, entries and stops were posted and if there was a question, a 'hand was raised' that sounds harsh but it worked.
After hours we discuss (we started that today) exactly what went wrong in some of the trades, rehash and then we discuss strategies once again. Tomorrow we will discuss the "INTRADAY SCALP SHORT"... We have about 25 or so new traders and another few that were used to the "strict" discipline of Pristine, which have morphed into our "techno fundamental" strategy. And at the end of the day we reiterate DO NOT HOLD.. except I did make clear what we were holding, a few puts and 2 good stocks that I will sell in pre market although they are sturdy so far (AMKR and CRUS).
We are probably undertrading and I think I might just like this way better for the time being. Holding onto EMLX and QLGC much of the session was more enjoyable then scalping for peanuts. Sure we scalped and the gap up this morning was steep for some stocks but others did not gap as much or gapped and snapped
If a moderator or even just a watch list editor isn't patient, knowledgeable and willing to actually "RUN a Trading Forum" much like a classroom, where there is ONLY ONE teacher and perhaps 2 aides, and accept the responsibility of every nuance in the room,it will die anyhow and the strong will survive.
But a lot of what you say is correct.. and I think the chat environment IS NOT FOR EVERYONE.. it can be distracting and working with a watch list or intraday updates might be the answer for those traders. Others need the educational stimulus and the group atmosphere and like to share, ideas, successes and failures. Each person has to find what works for them. |
