Lasertrader's Place

A Potpourri Of Trade Ideas and Setups

Archive for April, 2011

What You Can Learn From Online Poker To Help You Trade Better

Posted by lasertrader on April 27, 2011

The other day I was chatting with a friend about how to modify his approach to trading and make more money. He is constantly trying this method and that method and mixing styles every day. As I rambled I typed out a long dissertation about what you can learn from online poker players that will help you get  focused and be better at this trading business. Since it’s been a while since my last blog post I thought it would be good to pass on..here it is unedited.

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I have an analogy that really helps put things in perspective and its something that made me think and realize how to be successful at this business. One of the guys I learned from was a World Series Of Poker winner and also won 3 million dollar trading contests back in the 90’s. I always wondered how trading and poker went together until I spent some time watching my son.

One of my sons makes a lot of money in his spare time playing online Texas Holdem Poker. I play the free games and could never get good at it. I would win big and get my account way up them blow it all. After he graduated from College he lived with us for 3 months until his job in Colorado started. All the while he was playing poker so I sat down and watched him. The way he approached it was eye opening. Instead of thinking this and that and wondering and emotioning he has his system fully worked out.

I dont know if you have tried playing online Texas Hold Em Poker, if not you should try it, in a free environment like Zynga, you will learn a lot. OK i digressed..now back to the story about my son. In online poker when you are playing you can look at other things on your computer and when its your turn the poker table screen pops to the front. He would be looking at other things and when its his turn the screen pops up, he can look at the table, what his cards are, where he sits and what the bets are and know in a second what he will do and he does it. Its automatic and boring. He has a defined methodology and does it over and over. Boring and emotionless. He started out making some mistakes and over the months and years learned and tuned. Because its automatic he can play 3 or 4 games at a time.

You wonder how me and others can trade in and out of several stocks at a time either intraday or semi-swing. Its because we can look at the charts and the wind and instantly know what to do. You need to do this too.

Maybe try poker 🙂

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Watch The Gaming Stocks – But Choose The Right Horse

Posted by lasertrader on April 3, 2011

It’s time for another Sunday Sector discussion… “The Macau Effect”

The word out of Macau on Friday about the better than expected gaming revenues lit a fire under the gaming stocks from the open. In the past, news in this sector has produced very nice gains for some of the stocks in the sector. But the gaming sector can also be fickle. The gaming stocks should be in play this week and may produce some very nice gains for traders who work the sector. The trick is to know which horse to place your bet on.

I watch the Stocktwits stream and see all the gaming stocks being posted by many people. Most of the charts look technically sound and have nice breakout patterns but traders may find that there will be some disappointments with failed breakouts or lack of performance of some of the stocks in the sector. Personally, I like to trade on solid catalysts like this especially when it relates to the company’s bottom line. My advice is to take some time and do your homework. Its easy to find setups in the gaming sector, but this is more a Macau play than an across the board gaming play. In fact, an argument could be made that the Macau effect is taking away revenues from the U.S. Markets. With that being said, focus your trading on the companies that will benefit from this catalyst directly and not the ones that are just hitching a ride with the sector move.

The companies with Macau exposure include WYNN, MPEL, LVS and MGM

The companies with only U.S. exposure that are just going along for a ride with the sector include BYD. ISLE, PNK, PENN and FLL .

I won’t post the charts because they have all been posted numerous times on Chart.ly . I personally initiated positions in WYNN and MPEL on friday and will add on strength.

Sometimes when there is a lot of attention being paid to a sector directly, its often good to see what collateral stocks might make a stealth move while all eyes are looking at the most well known trading stocks. This week I will also have my eye on IGT who is a major supplier of the electronic gaming systems to the Macau marketplace. The IGT weekly chart is cleaner to look at. A break of 16.80 could see 19 or more.

Another supplier to the Macau casino operators is SHFL. Bring up a daily chart for the close in view. I think the monthly chart gives a solid picture of where it has been and where it could go if 52 week highs are broken.

Have a good week and keep an eye on this sector. Even though the market may rest a bit here, the gaming stocks often will ignore a pullback in the general markets. As always, trade what you see and not what you feel or hear.

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