RIMM wtf happened?
- Thread starter omegapoint
- Start date
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.
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.
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.