Discussion in 'Stocks' started by omegapoint, Jun 17, 2009.
As opposed to the Iphone?
It's a high risk situation but also high potential for reward. I have held RIMM through earnings in the past and have been rewarded big time. I also got crushed when they missed last year
I just think expectations are too high on this quarter. Will be hard to beat, but if anybody can do it RIMM can.
This is what happens when traders have a bias as to where the market is going.
One of the golden rules in trading is to never have a bias as to where markets are going. Think in probabilities not with hopes.
The new pre is a very nice phone and might compete with the big boys. The younger 20 somethings were all salivating at my buddies new pre last night at the bar.
What happens when traders have a bias?
I personally think it's important to look into the future and form a bias on market direction. That doesn't mean you stick to that bias and are not able to bring in any contradictory information (permabears), it just means you form a plan based on that bias.
That being said, it's also important to have a backup plan in case your bias is wrong (which it inevitably will be some of the time). As long as you're not stubborn with your bias, I think it can be beneficial.
Holding through earnings is not trading, its speculating. There is no intelligent reason why any trader would hold on to their position. While I talked about the company earlier, none of that really matters when it comes to trading earnings. I completely agree with Ratiotrader, a bias is for Cramer, not a trader. Congrats to whoever it was that made a killing in RIMM, I hope your coin flip is right this time.
there will be a lot of noob day traders trying to get high off the momentum after earnings. Fade these suckers, or go long on any dips. If I was long rimm before earnings i'd at least buy some insurance (puts) ... ya it cost more but it might save your ass.
Right, when I say bias I mean an absolute belief in where the market is going. You will never know.
The best traders (and I have dealt with many of them) don't have a bias. They think in probabilities. They know their edges and they act on their edges. After they're in a trade they don't get caught up on the company, news, or any of that.
It's purely a trade what you see, not what you think mentality...everyday.
I would fade the move whether up or down because of momentum traders that you've mentioned. Any move after earnings is likely to be too excessive.
magic coin flip says heads, it goes up.
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