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Discussion in 'Prop Firms' started by stock777, Sep 17, 2010.

  1. I work for a prop firm in Austin, and we flew Mike B and Steve Spencer down for a weekend to talk to us about their trading etc.

    So somethings I walked away with are:

    * once upon a time tape reading was super easy and you could crush in play stocks. Plenty of our old traders did this. Alot of those guys adapted or got fired cause they didn't realize that game is basically over. Once a week there might be trade that works though.

    * They trade like mice, getting in a couple hundred shares and hitting out when it moves 3 cents against them. I think they are trying to improve this from reading their blog, but it takes time. Our best traders size up to 20k, 50k, 100k shares when they feel very confident, but hey were more of an arb shop and actually we get alot of free money. so our risk tolerance differs alot from guys just trading lvl2 with a minimal edge that worked in the 90's. BTW quad witching today was amazing, free money everywhere.

    * Don't look down on their pre-market calls, i mean you are the idiot if you believe anyone can call what an earnings stock is gonna do on the open and what levels are gonna hold. No one can do that. Trade what you see at the time, not what some guys said is their idea on twitter. You think the best traders on the street use twitter, or follow twitter for trade ideas?

    * Yeah mike as a big ego, but i hear thats how New Yorkers are so I kinda wrote it off. Steve however is calm, courteous and actually explains things that make since to most people. Mike kinda talks about his best trades more than anything else and looks down on you if you didn't trade it also.

    *They have been excellent over the last year adapting to longer term hold trades (still intraday) based of pretty big levels. I do these trades myself and hell they work great nowadays. Find some stocks breaking 52week highs on high volume, find a big resistance lvl, when it breaks it and pulls back, they almost hold support there every time. Buy it and count your benjamins. Not too hard.
     
    #41     Dec 17, 2010