high! After explaining what had happened, the guy went to his desk to continue working. He seemed resigned to being beaten.

My reaction? "You're not kidding, are you?" Was he really sitting in my lectures? He must have missed a few classes. No one ever told him that trading is so easy that you can sell at a resistance level and then wait for a crash. True, sometimes collapses happen a second after opening a short position. Such trades can be enjoyed. Но вы также должны уметь trade. In this case, it refers to the ability to deal with fake breakthroughs, which occurred with the RIMM action.

Let's try to figure out the false maneuver of the RIMM stock and what actions should be taken in such cases.

The technical level is located at the price of $82. There are trades in which this level will be held, after which the price will go down. At the opening, when the volatility is especially high, the probability of breaking through such levels increases. It is quite possible that RIMM will shake off weak short positions after being above resistance for a while.

Of course, near the level of $82, MMM shares should be sold by definition. But the opening of a short position must be pieced together, gradually. You sell a small number of shares at the $82 level and watch how the price behaves. If it is above the $82 level, you can sell some more, say at $82.17, as the next resistance level is at $82.25. When the RIMM stock is higher, either immediately exit the position, or take a short pause and see if the price can hold above the resistance level. If you закрылись, а цена возвратилась под уровень, надо опять входить в position. Having re-opened a short position, you can feel relatively calmer, as now the market has accumulated more short-term long positions open above the $82 level and they will be forced to either simply close them or roll over.

You should be able to trade at this level in more difficult situations than the $82 hold offer. Such trades at the resistance level at the opening of the session can proceed along various scenarios. You must learn to work with all of these subsets. The overall picture remains unchanged. We are talking about a resistance level, the probability of breaking through which is less than the chances of a price drop. Take advantage of the opportunity provided.

With proper preparation, you will be able to handle all scenarios for the PIMM stock around the $82 resistance level. The trader's mindset of simply following predetermined levels and placing a stop loss order does not seem to be sufficient. If you ограничиваете себя подобными рамками, вам не останется ничего иного, как жаловаться на несправедливость после потери денег. The market does not encourage lazy traders who think that it is enough to simply buy at such and such a price and then sell at such and such.

The trading show in 2009 stood out to me not only for the speech I had to give to an audience, but also for the absurd trading system that was on sale. People were encouraged to buy when the screen turned green and sell when it turned red. The exposition of the seller company was visited by more potential customers than our stand during the whole weekend. Anyone who thinks trading is so primitive deserves the inevitable consequences.

The market is constantly changing. Patterns that brought money yesterday may stop working tomorrow. Traders must develop skills that will help them adjust their actions as needed.

You say tomato, I say tomato
Один из наших наиболее успешных трейдеров как-то в сердцах сказал мне, что завидует Steveу. Steve может отслеживать одновременно восемь открытых позиций, как какой-то суперкомпьютер. I know many examples of how, in private trading companies, copying the actions of leading traders led to sad results. Inexperienced beginners are not able to cope with the complex trading patterns that are practiced by star traders.

An experienced educator will help you master comprehensive trading skills, after which you will be able to determine your own trading style. The importance of this approach was noted by the defender of the Los Angeles Lakers, Derek Fisher, talking about his coach Phil Jackson, about whom we уже упоминали - «He не пытается контролировать игроков, а дает нам возможность быть теми, кто мы есть".

While preparing to write this book, I came across a story about Boris Stein of Stein Management, LLC, a software trader whose worst moment in his career was when he lost a lot of money trying to mechanically copy the actions of famous traders.

In an interview with Trader's World magazine, Mr. Stein recalled the painful experience of imitation:

“When I started trading in 1996, I wanted to put into practice the information gleaned from the book regarding placing stop orders. I placed a stop order to buy the S&P above the current price, and when it filled, I placed a protective stop loss order below the current price. Both orders were set at levels, in full accordance with the recommendations given in the book, and I did not intend to move them under any circumstances, since moving orders in the book was called the greatest trader's sin. Shortly after the buy stop order was filled, the S&P went down like a stone, and the stop loss order hit. After knocking me out of the market, the S&P went up again. My loss was $5,000 in 25 minutes. My buy price exactly matched the daily high, and my sell price exactly matched the daily low price. И по сей день не могу поверить в это".

It is likely that some smart market-maker shark recognized the hand of an inexperienced beginner when placing orders and deprived him of five thousand dollars with relative ease. Luckily, Stein quickly learned that you couldn't imitate trading stars without first mastering the basics of the stock market. He had to develop his own system.

Мы в компании SMB Capital придерживаемся стиля активной краткосрочной trade. I advised some traders to move to another company, as the trading style adopted by us did not suit them very well. Эд WITHейкота следующим образом высказался по этому поводу в книге - «Маги рынка» (Market Wizards) - «WITHамой лучшей системы не существует так же, как и самой лучшей автомашины. Однако, возможно, существует машина, лучше всего подходящая вам". These traders were good at slow, longer-term trading, making decisions based on fundamental analysis data like the one below. taken into account by the investment banker in the process of compiling the balance sheet. They could not follow all our indicators and make trading decisions in hundredths of a second. SMB Capital could not serve as a suitable trading niche for them.

Chart Conqueror
One of the people who had to leave SMB Capital due to incompatible trading styles was a trader I really liked during the training course. За привычку лазать по графикам, его называли Chart Conqueror (Chart Climber). His brains were arranged rather curiously. Chart Conqueror присылал мне на электронный почтовый ящик статьи из The New Yorker и The Onion (американские журналы), которые я пропустил. Before the 2008 elections, he entertained us with interesting maxims about state bailouts for bankrupt banks, Pakistan, and tax increases.

This former prop trader was registered on a mass of Internet resources, communicated with other traders on forums and chats. For many years he was engaged in rather tedious work, therefore, being among us, he enjoyed the new atmosphere for him to the fullest. At the first stage существования компании SMB Capital мы на правах субарендатора обитали в офисе другой компании. The space allocated to us was not enough for everyone, and I was offered to fire the Graph Conqueror. I refused.

This was one of the reasons that prompted us to look for a new office. The firm is made by traders, not back office people. Steveу и мне было лучше известно, кого следует уволить, а кого оставить, ведь мы сами traders. Во время совещания, на котором решался вопрос перехода в другой офис, я высказался довольно откровенно -«Главными в трейдинговой компании являются traders. It is they who decide the future of the company. Компания всегда будет управляться трейдерами, и работать для traders. Никто не принудит нас к увольнению наших трудолюбивых трейдеров, пусть даже не самых сильных, до тех пор, пока они выкладываются на работе и прогрессируют". Chart Conqueror был самым оптимистичным трейдером из всех, кого я обучал. A successful trade just before closing will be the only one that he will remember for a whole month. He был похож на любителя гольфа, во время попоек в клубе вспоминающего лишь о том, как однажды загнал в 18-ую лунку мяч с 80 ft.

Время шло, а Aльпинисту графиков все не удавалось начать уносить деньги с рынка. (Aрендодатель, советовавший сэкономить на нем офисное пространство, в конечном итоге оказался прав, но момент времени для его предложения был выбран неверно и, что еще важнее, обоснования никуда не годились). WITH нашей стороны было бы нечестно заставлять его верить в то, что присутствие в компании SMB Capital будет содействовать его прогрессу как трейдера. It's not that we lost a lot of money because of him, it's just that our company was not suitable for him. And we let the Graph Conqueror go.

I'll tell curious readers that he still sends me interesting articles and runs into our office from time to time. This trader found his niche by becoming a successful futures trader.

Looking inside
Young traders who want to succeed must engage in introspection. Most new traders need to improve the quality of execution of the most successful formations for them, they should enter the market on