Posted by 12 June 2007

How to Use a Stop Limit Order to Cover a Short Position

I got this question the other day: When you short a stock at 30.00 and you want to place a stop limit in case it jumps up past your max loss of say, 31.00, how exactly is that order entered (everytime I try to do this, it sells (Ed: he means buys) my stock immediately [...]

Read the full article
Posted by 26 June 2006

Trading Starbucks Last Friday

SD Trader wanted to know: Mike, I was hoping you could look at SBUX for today’s trading session and show me how you would trade this stock. I got in today at the $36.25 breakout but my stop was too tight (ts.05) and I got stopped at $36.38. Specifically, provide when you would change your [...]

Read the full article
Posted by 28 April 2006

Worden Users on the Pareto Principle, Position Sizing and the Kelly Criterion

What a coincidence (do coincidences actually exist???) that just as I’ve been thinking more about money management Worden has had a run of users writing in about money management. Here are some of those letters which were published in the Worden Report (emphasis & links added by yours truly):

Read the full article
Posted by 20 August 2005

Thoughts on Day Trading

2011 Update: You may also be interested in my article, Tools of the Trade, detailing how I trade as well as my hardware and software setup. 2010 Update – I (Mike) now trade exclusively with MB Trading. I suggest using stock brokers comparison site StockBrokers.com to compare the best day trading brokers. I’ve been exclusively [...]

Read the full article
Posted by 25 January 2004

Watchlist Disclaimer

These are short term plays (probably 3 to 5 day moves). By no means will I trade every stock on the list. When an alert fires I’ll examine the intraday chart to see if there’s still a good entry point. If a stock gaps through my entry I may very well just let if go [...]

Read the full article