Don Bright and his brother Bob are proprietary traders. Their firm, Bright Trading, has offices all over the country. The Bright brothers teach motivated students how to electronically ‘scalp’ the market, eking out small gains on rapid-fire movements day after day.
Don Bright gave a statement to The Wall Street Journal on Friday. "In this kind of market, you nibble away (as a buyer) on the way down and sell every rally," he said. "It's been working every time."
In No Limit Texas Hold ‘Em -- the most popular form of poker these days -- pushing your stack “all in” works every time, too… except the last one, that is.
(You’ll have to forgive me. As an avid poker player, the phrase “works every time” just makes me twitchy. Maybe it’s the multiple recollections of pocket aces getting cracked.)
So are the broad indexes a tradable buy at these levels? There’s certainly a case. Take the Russell iShares, for example. The January intraday lows provide a psychological support area, and many traders like situations where the clear play is obvious. If Monday’s action is supportive, quick-shot artists like Mr. Bright will be looking for a spot to go long.
Dodging Bulldozers
But just remember, the name of the rapid-fire trading game is Jack Be Nimble. When it comes to jumping in and out, the only way to make money is to do it with size. Leverage has to be large and stops have to be tight. This is the proverbial “scooping up nickels in front of bulldozers” approach.
To your humble editorial director, dodging bulldozers looks like unappealing work. I’d rather put my focus on the major trends and let them do the work. Less hassle and less risk to boot.
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Jesse Livermore, one of the all-time trading greats, observed that the speculator’s “strongest and truest allies in the world” are underlying conditions. The way I see it, underlying conditions are serving up so many top-notch opportunities right now -- both long and short -- that it seems a waste not to put those strong winds at your back. Doing this just takes a little more patience is all… patience in picking spots, waiting for solid entry points, and letting profits run.
Done correctly, I believe you can rack up trading and investing gains with nary a bulldozer in sight. It just takes a good amount of legwork to sift the data, stay on top of the trends, and target high-quality entry points in real time. And that’s what the Taipan team is here for.
Wish You Were Here
Speaking of “here,” as in Baltimore, on Friday the Taipan team enjoyed a special treat. We met with a group of VIP Inner Circle members at the Renaissance Hotel down by the harbor. It was a casual evening of dinner, cocktails and off-the-cuff conversation. We shared trading stories, talked about market trends, and even laughed over a conspiracy theory or two.
As a relatively new face to Taipan (have I really only been writing you a few months?), it was wonderful to get the chance to put names and faces to the readership -- especially our most valued readers, the VIP Inner Circle members.
To those of you I chatted with, thanks again for coming -- and for reading!
If you aren’t sure what I’m talking about, by the way, the VIP Inner Circle is Taipan’s premier membership offering. As a VIP member, you get access to all Taipan’s newsletters and trading services, including the exciting new ones soon to be rolled out.
In terms of improvements and new developments, we’re just getting started here. Taipan is only going to get better in my opinion. It’s a good time for it, too. Increased volatility means greater profit potential and greater risk. These are the times when strong guidance really pays… As the markets grow more volatile, I believe that VIP membership will be worth more than ever before.
You can find out more about the VIP Inner Circle here.
Next Stop, Tahoe?
For those who didn’t get a chance to attend, don’t worry. We enjoyed hanging out with you so much, we’d like to do it more often. The informal plan is to start having these get-togethers on a regular basis, and to do them in various spots around the country. That should make it easier for you non-East Coasters to attend.
Technically, I’m a West Coast guy myself. It’s roughly a 2,600-mile trek from northern Nevada (my home) to Taipan’s Baltimore HQ. San Francisco is less than a four-hour drive by comparison. (I’m still in Baltimore now, by the way, writing to you from the Peabody Court Hotel.)
So when Erin Beale, our group publisher, asked where we might want to meet next, I humbly suggested my home turf -- Lake Tahoe. I spent a number of years on Tahoe’s north shore; now it’s just a 25-minute scenic mountain drive. It’s tough dealing with 300 days of sunshine, year-round outdoor activity, and some of the most beautiful scenery on earth. But hey, someone’s got to do it.
Of course, the time and dates of the next VIP gathering aren’t locked up yet. There are some other great locations on the roster, too -- hence my informal lobbying campaign. (Are you reading this, Erin?)
Wherever the next one takes place, I hope to see you there!
Warm Regards,
JL
